Rights On Target: Exicom Fuels Growth with ₹260 Cr Boost

Image Source: Motilal Oswal

Exicom Tele-Systems Ltd. (NSE: EXIC.NS) which is the energy storage and EV charging infrastructure space leader in India has sanctioning a ₹2.60 billion rights issue for the purpose of strengthening its capital base. The move is to fund expansion plans, reduce debt and increase R&D capabilities as the company prepares for long-term growth in the clean energy and telecommunications space.

Key Points

Issue Size: ₹2.60 billion (₹260 crore)
Purpose: Funding working capital needs, repayment of borrowings, and investment in product innovation
Strategic Priorities: Building footprint in EV charging, energy storage batteries, and telecom power solutions

Financial Highlights (FY25):

Revenue: ₹8,676 crore
Net Loss: ₹1,100 crore
Debt-to-Equity Ratio: 115%
Return on Equity: -16.48%
Stock Performance: EXIC has delivered 38% in 1 year, outperforming the broader market amid recent market volatility

Growth Prospects

The rights issue will provide Exicom with the much-needed fiscal space to scale up operations and tap into India's rapidly growing EV and renewable energy markets. With government support in clean mobility and digital infrastructure, the company is poised to benefit from sectoral tailwinds.

Sources: Investing.com, Moneycontrol, Yahoo Finance