Exicom shares jump 11% after firm announces Rs 260-crore rights issue

New Delhi, June 25, 2025 — Shares of Exicom Tele-Systems Ltd soared by nearly 11% on Tuesday following the company’s announcement of a ₹260-crore rights issue aimed at bolstering its capital base and supporting strategic growth initiatives, including capacity expansion and technology enhancement.

The stock rallied to an intraday high of ₹279.80 on the NSE, compared to its previous close of ₹251.75, amid heightened investor interest and robust trading volumes. The rally underscores growing confidence in Exicom’s long-term vision, particularly in the rapidly expanding electric vehicle (EV) and energy storage ecosystem.

Rights Issue Details

Exicom’s board approved the issuance of equity shares aggregating up to ₹260 crore through a rights offering, allowing existing shareholders to subscribe in proportion to their holdings. According to the company’s regulatory filing, the issue price and entitlement ratio will be disclosed in due course.

"The rights issue will help strengthen our balance sheet and support growth in the EV charging infrastructure and stationary battery markets," the company stated.

This marks Exicom’s first major equity fundraising exercise since its successful listing in early 2024. The proceeds will primarily be used for:

• Capacity augmentation of its EV charger manufacturing units

• R&D investment for next-generation energy storage systems

• Working capital requirements

• Debt reduction and other general corporate purposes

Market Reaction and Analyst Take

The market responded enthusiastically to the capital infusion plans, with analysts highlighting the move as growth-accretive.

“Exicom’s planned rights issue is a smart capital allocation move given the aggressive EV infrastructure rollout underway in India,” said Anand Kulkarni, Vice President at Prithvi Capital. “Investors are encouraged by the transparency and the long-term roadmap the company has laid out.”

Trading volumes in Exicom shares surged over 2.4 million, significantly higher than the average 20-day volume, indicating strong buying interest post-announcement.

Position in the EV Charging Space

Exicom is a key player in India’s EV charging solutions segment and has established partnerships with top automakers and fleet operators. The company operates in two verticals:

1. EV Chargers (AC and DC fast chargers)

2. Energy Storage Systems (ESS) for telecom, residential, and industrial applications

As per industry estimates, India’s EV infrastructure market is expected to grow at a CAGR of over 35% till FY2030, providing ample room for players like Exicom to scale.

"With the government pushing for faster EV adoption and charging station deployment, Exicom is rightly placing its bets on scaling up now,” noted Rashi Arora, clean-tech equity analyst at Stellar Insights.

Financial Snapshot and Stock Performance

Exicom’s FY25 results revealed a robust YoY revenue growth of 42%, supported by large orders in both EV and stationary storage segments. EBITDA margins improved to 17.4%, reflecting better product mix and operating leverage.

Since its IPO, the stock has gained over 90%, outperforming benchmark indices and sectoral peers. The upcoming rights issue is seen as a move to solidify its lead, while managing capital structure prudently.

Investor Outlook and Strategic Roadmap

The rights issue comes at a time when investors are showing increased interest in clean energy and mobility solutions. Analysts believe Exicom’s move aligns well with evolving investor preferences toward sustainable and tech-driven businesses.

“We believe this capital raise puts Exicom in a commanding position to secure larger institutional orders,” said Mehul Shah, fund manager at Novus Alpha. “The rights issue price, once announced, could present an attractive entry point for long-term investors.”

Going forward, the company is expected to explore:

• International partnerships for charger deployment in Southeast Asia and MENA

• Software platform integration for managing EV charging networks

• Local component sourcing to reduce dependency on imports and improve margins

Exicom’s ₹260-crore rights issue announcement marks a strategic inflection point for the company as it enters the next growth phase. With the EV and energy storage sectors poised for rapid acceleration, the capital raise is expected to provide the financial flexibility required to seize emerging opportunities.

Investors appear confident that the company’s focused execution strategy, backed by fresh capital, could unlock significant shareholder value in the medium to long term.