Exide Industries Backs Subsidiary EESL with ₹99.99 Crore for Greenfield Project

Exide Industries Limited (EIL) has announced an additional equity investment of ₹99,99,99,972 in its wholly owned subsidiary, Exide Energy Solutions Limited (EESL), through a rights issue. 

With this latest investment, Exide’s total investment in EESL now stands at approximately ₹2,952.24 crore. This strategic move supports EESL’s development in the energy solutions space, with EIL’s shareholding in the subsidiary remaining unchanged at 100%.

Objective of the Acquisition

To meet the increasing demand for lithium-ion batteries in the Indian EV sector, EESL is establishing a greenfield manufacturing facility in Bengaluru. This facility is intended to enhance EESL’s capacity to produce lithium-ion battery cells, modules, and packs, expanding its market footprint in both EV and stationary power storage applications. The equity investment on a rights basis is specifically aimed at funding this greenfield project, in addition to meeting various capital requirements to support EESL’s growth.

Exide Industries’ ongoing investment in EESL aligns with its long-term vision of advancing India’s clean energy transition. With lithium-ion batteries central to the future of energy storage and EVs, EESL’s growth is expected to strengthen Exide Industries’ position in the market, contributing to sustainable energy solutions and supporting the nation’s shift toward electrification. This investment highlights Exide’s commitment to innovation and the expansion of clean energy infrastructure in India.

EESL, incorporated on March 24, 2022, is focused on the production and distribution of lithium-ion battery cells, modules, and packs, catering to India’s growing electric vehicle (EV) market as well as stationary applications. As of March 31, 2024, EESL recorded a net worth of ₹1,981.56 crore and generated a turnover of ₹239.14 crore, though it reported a post-tax loss of ₹149.45 crore for the year.

On November 13, 2024, Exide Industries share price opened at ₹431.50, touching the day’s low at ₹423.60, as of 10:33 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.