Exide Industries Boosts Investment in Exide Energy Solutions for Lithium-Ion Battery Production

On May 14, 2024, Exide Industries Limited (EIL), a leading player in the Indian battery industry, announced a significant investment in its wholly-owned subsidiary, Exide Energy Solutions Limited (EESL). This strategic move notes EIL’s commitment to expanding its footprint in the burgeoning lithium-ion battery market and supporting India’s electric vehicle (EV) revolution.

Fueling Growth in Lithium-Ion Battery Production

EIL has invested ₹74.99 crore through a rights issue in EESL’s equity share capital. This investment brings EIL’s total commitment to EESL (including previous investments in the merged subsidiary Exide Energy Private Limited) to a substantial ₹2,377.24 crore.

These funds will be directed towards EESL’s greenfield project in Bengaluru, a state-of-the-art facility dedicated to the manufacturing and selling of lithium-ion battery cells, modules, and packs. This strategic investment highlights EIL’s proactive approach to capturing a significant share of the rapidly growing Indian lithium-ion battery market.

Meeting EESL’s Funding Requirements

The equity infusion through the rights issue is critical in financing EESL’s ambitious greenfield project. These funds will address the project’s diverse funding needs, ensuring its timely completion and successful launch. Furthermore, it signifies EIL’s unwavering support for EESL’s vision to become a leading player in India’s lithium-ion battery production landscape.

Transaction Details and Shareholding Structure

The transaction was finalised on May 14, 2024. EIL subscribed to 2,08,33,333 new equity shares of ₹10/- each at a premium of ₹26/- per share on a rights basis. Importantly, this investment does not affect EIL’s ownership structure in EESL, which remains 100%.

EESL: A Catalyst for India’s EV Future

Exide Energy Solutions Limited, established in March 2022, is poised to play a pivotal role in India’s transition towards a cleaner and more sustainable future. By focusing on the manufacturing of lithium-ion battery cells, modules, and packs, EESL will cater to the growing demand for these crucial components in the Indian electric vehicle market. Additionally, EESL’s solutions will extend to stationary applications, further contributing to advancements in clean energy storage and usage.

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.