Endurance Technologies’ stock rises on Maxwell Energy Systems acquisition

Endurance Technologies has purchased an additional 5% equity position in Maxwell Energy Systems (Maxwell), bringing its total ownership to 56%. This additional interest was bought for a cash value of Rs 6.94 crore, based on the agreed valuation methodology as per the provisions of the Share Subscription and Purchase Agreement (SSPA) dated May 18, 2022. 

Maxwell’s primary focus is on creating and developing sophisticated electronics platforms for next-generation mobility and energy storage solutions. Endurance intends to use Maxwell’s extensive technical knowledge and BMS implementation experience in both India and Europe. As a preferred tier-1 auto component supplier, the Company is expected to successfully use its business ties to build the acquired business with its OEM clients. 

The Company finalised the acquisition of a 5% ownership investment in Maxwell in the second tranche, which finished on July 17, 2023. This comes on top of the 51% stake acquired on July 1, 2022. The remaining 44% ownership investment in Maxwell will be bought in yearly tranches over the following four fiscal years. 

Endurance Technologies is one of India’s major auto-components firms. The company is in the business of manufacturing and selling aluminium die casting (including alloy wheels), suspension, transmission and braking products with operations spread across India. The company sells its products in India as well as exports to foreign countries. 

Endurance Technologies is currently trading at Rs 1708.40, up by 8.95 points or 0.53% from its previous closing of Rs 1699.45 on the BSE. The scrip opened at Rs 1704.85 and touched a high and low of Rs 1714.30 and Rs 1696.90 respectively. So far 147 shares were traded on the counter. 

The BSE group ‘A’ stock of face value of Rs 10 has touched a 52-week high of Rs 1738.35 and a 52-week low of Rs 1171.60. Last one week high and low of the scrip stood at Rs 1738.35 and Rs 1650.45 respectively. The current market cap of the company is Rs 23911.98 crore. The promoters holding in the company stood at 75.00%, while Institutions and Non-Institutions held 23.19% and 1.81%, respectively. 

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.