Exide Industries’ Significant Investment in Exide Energy Solutions Limited

On June 26, 2024, Exide Industries Limited (EIL) announced a significant investment in its wholly-owned subsidiary, Exide Energy Solutions Limited (EESL), amounting to ₹49,99,99,968. This investment was made through a subscription to equity shares on a rights basis, maintaining EIL’s existing shareholding percentage in EESL. With this latest infusion, EIL’s total investment in EESL now stands at ₹2,502.24 crore, inclusive of previous investments made in its predecessor, Exide Energy Private Limited (EEPL).

Established on March 24, 2022, EESL specialises in the production and sale of lithium-ion battery cells, modules, and packs tailored for India’s burgeoning electric vehicle market and stationary applications. As of March 31, 2024, EESL reported a net worth of ₹1,981.56 crore and a turnover of ₹239.14 crore. However, the company also recorded a loss after tax amounting to ₹149.45 crore, as of March 31, 2024.

The recent capital infusion by EIL is earmarked to support EESL’s strategic initiatives, including the establishment of a greenfield manufacturing facility in Bengaluru dedicated to lithium-ion battery cells, modules, and packs. This investment underscores EIL’s commitment to bolstering EESL’s capabilities in meeting the increasing demand for advanced battery technologies in both automotive and stationary energy storage sectors.

The transaction, conducted at arm’s length, involved EESL issuing 1,38,88,888 equity shares with a face value of ₹10 each at a premium of ₹26 per share to EIL. This capital injection is pivotal in funding EESL’s expansion plans and addressing its operational funding requirements effectively.

EIL’s sustained investment in EESL aligns with its broader strategy to capitalise on the accelerating adoption of electric vehicles and renewable energy storage solutions in India. By enhancing EESL’s manufacturing capacities and technological capabilities, EIL aims to reinforce its position as a key player in the evolving energy storage landscape.

About Exide Industries Ltd 

Exide Industries Ltd is mainly involved in manufacturing storage batteries and allied products in India.

On June 27, 2024, the share price of Exide Industries Ltd opened at ₹568.10, touching the day’s high at ₹573.40, as of 10:39 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.