Amara Raja Energy & Mobility Ltd Increases Stake in InoBat AS

Amara Raja Energy & Mobility Limited (formerly Amara Raja Batteries Limited) decided to invest in InoBat AS (formerly InoBat Auto AS), which is based in Oslo, Norway. InoBat AS is the parent company of InoBat Auto JSA, located in Banska Bystrica, Slovak Republic. The necessary transaction documents were signed on June 20, 2024.

Objects And Impact Of Acquisition

The investment in InoBat aligns with the company’s Energy & Mobility strategy to advance green technologies and solutions. This initiative involves expanding and investing to sustain the company’s leadership in the Energy & Mobility sector while creating new growth opportunities.

Details Of Acquisition

The acquisition will be settled in cash. The shares are being acquired at a subscription price of EUR 3.603 per share. The current investment of approximately EUR 20 million will secure an additional 4.5% equity stake in InoBat AS, Norway. This will increase Amara Raja Energy & Mobility Limited’s total equity stake in InoBat AS to around 9.32%, including its previous investment.

The acquisition is anticipated to conclude by July 31, 2024, contingent upon meeting the Conditions Precedents outlined in the Transaction Documents.

About InoBat AS

InoBat AS specialises in conducting research and development in the field of batteries for electric vehicles and producing lithium-ion battery cells, including customised variants. In a pre-revenue stage, InoBat is actively seeking investment to finalise its pilot plant and intends to establish more giant Giga factories as part of its future expansion plans. Their products cater to global OEMs in automotive, commercial vehicles, motorsport, and aerospace sectors, offering customised solutions to meet specific industry needs.

About Amara Raja Batteries Limited

Amara Raja Batteries Limited (ARBL), the flagship company of the Amara Raja Group, is a technological leader and one of India’s largest manufacturers of lead-acid batteries for industrial and automotive applications in the storage battery industry. It has prestigious OEM clients, and its industrial and automotive batteries are exported to more than 50 countries worldwide.

On June 21, 2024, Amara Raja Energy & Mobility Ltd’s share price opened at ₹1,419.70, touching the highest price of ₹1,465.35 as of 10:42 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.