Exide Industries Invests ₹74.99 Crore in its Subsidiary for Battery Plant in Bengaluru

Exide Industries Limited (EIL) has announced a significant investment of ₹74,99,99,988 (₹74.99 crore) through a subscription to the equity share capital of its wholly owned subsidiary, Exide Energy Solutions Limited (EESL), on a rights basis.

This latest investment brings the total capital infusion by EIL into EESL to ₹2,652.24 crore. Importantly, this transaction does not alter EIL’s 100% shareholding in EESL.

Exide Energy Solutions Limited, established on March 24, 2022, is dedicated to the manufacture and sale of lithium-ion battery cells, modules, and packs for India’s electric vehicle (EV) market and stationary applications. This move underscores EIL’s commitment to expanding its footprint in the burgeoning EV sector and supporting the growth of sustainable energy solutions.

EESL has a paid-up equity share capital of ₹940.33 crore and a net worth of ₹1,981.56 crore as of March 31, 2024. EESL reported a loss after tax of ₹149.45 crore for the FY 2024. The company’s turnover for the same period was ₹239.14 crore.

The recent capital injection is expected to support in establishing a greenfield manufacturing plant in Bengaluru. This plant will concentrate on the production of lithium-ion battery cells, modules, and packs, which are crucial for advancing EESL’s capabilities in the electric vehicle sector. The investment will facilitate the financing of this new project and address various funding requirements associated with it.

EESL has allotted 2,08,33,333 equity shares with a face value of ₹10 each at a premium of ₹26 per share to EIL. This equity raise, conducted on a rights basis, is part of a strategic effort to bolster EESL’s financial position and support its expansion plans. The transaction was executed at arm’s length, ensuring fairness and transparency in the financial dealings between EIL and its subsidiary.

With this investment, Exide Industries maintains its full ownership of EESL, reinforcing its strategic focus on the electric vehicle market and green energy solutions while continuing to drive growth and innovation within the sector.

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