EV Stock Jumps 4% After Stake Dilution to 92.23% in Dutch Arm Post OCD Conversion

SYNOPSIS: Company approved $5.5 million OCD conversion in Netherlands subsidiary, leading to dilution of stake to 92.23 percent, transitioning it from wholly owned to material subsidiary while retaining majority control.

During Thursday’s trading session, shares of one of India’s leading EV charging and Critical Power solutions manufacturers, present across the entire EV charger value chain with a host of products across both AC & DC charger segments, surged more than 4 percent on BSE, after announcing stake dilution in its Dutch arm post OCD conversion.

With a market cap of Rs. 1,712 crores, shares of Exicom Tele-Systems Limited are currently trading in the green at Rs. 123.08 on BSE, up by around 2 percent, compared to its previous closing price of Rs. 120.81. The stock has delivered negative returns of over 26 percent in the last one year, but has gained by around 48 percent in one month.

What’s the News

According to the latest exchange filings, Exicom Tele-Systems Limited informed that the Board of its Netherlands-based subsidiary, Exicom Power Solutions B.V., has approved an additional conversion of Optionally Convertible Debentures (OCDs).

The approved conversion pertains to OCDs aggregating to $5.5 million (~€4.77 million), which includes an incremental conversion of $1 million over and above the previously approved $4.5 million. These OCDs will be converted into ordinary equity shares of Exicom B.V., each having a nominal value of €1, in line with the terms of the underlying agreements.

Following the conversion and subsequent allotment of shares to the foreign investor, the parent company’s shareholding in Exicom B.V. has been diluted from 100 percent to 92.23 percent. As a result, Exicom B.V. will no longer be classified as a wholly owned subsidiary but will continue to remain a material subsidiary under SEBI Listing Regulations.

Financials & More

Exicom Tele-Systems Limited is in the business of providing efficient and reliable Power Electronics Solutions for global Telecom, IT, and other related industries and the manufacturing of electric vehicle chargers and lithium-ion batteries for E-vehicles. Its manufacturing facilities are located at Gurugram (Haryana) and Solan (Himachal Pradesh), while the research and development (R&D) facilities are at Gurugram and Bangalore (Karnataka). 

The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 41 percent, from Rs. 197 crores in Q3 FY25 to Rs. 277 crores in Q3 FY26. Meanwhile, its net losses widened by around 39 percent YoY from Rs. 49 crores to Rs. 68 crores over the same period, indicating continued pressure on profitability.

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