Exide Industries announced that it has invested ₹149.99 crore in its wholly owned subsidiary, Exide Energy Solutions Ltd. (EESL), to support a lithium-ion battery manufacturing project in Bengaluru.
Exide Industries Limited (EIL) has announced an investment of ₹149.99 crore in its wholly owned subsidiary, Exide Energy Solutions Limited (EESL), via a rights issue on January 15, 2025.
This raises the total investment in EESL to ₹3,302.23 crore. The rights issue involved the allotment of 4,16,63,892 equity shares at ₹10 each, with a premium of ₹26 per share, the company said in a statement on the stock exchanges.
The funds raised will primarily support the establishment of a greenfield plant in Bengaluru for manufacturing and selling lithium-ion battery cells, modules, and packs for electric vehicles and stationary applications.
With this latest investment, Exide Industries’ stake in EESL remains at 100%. The transaction is at arm’s length and does not require any regulatory approvals.
EESL, incorporated on March 24, 2022, is focused on battery manufacturing for India’s electric vehicle sector. As of March 31, 2024, the company’s turnover stood at ₹239.14 crore, with a net loss of ₹149.45 crore for FY 2024.
Exide Industries reported its Q2 results for FY2024-25, showing mixed performance. The company’s revenue increased by 1.8% year-on-year, reaching ₹4,450 crore, and saw a modest 0.32% growth compared to the previous quarter.
However, profit after tax declined by 14.15% YoY, amounting to ₹231.28 crore. Operating income also saw a decline of 8.68% YoY, indicating pressure on margins.
The company’s earnings per share (EPS) fell by 13.92% to ₹2.72, further reflecting the challenges it faced. Rising Selling, General & Administrative (SG&A) expenses, which grew by 9.93% YoY, along with higher operating costs, contributed to the decrease in profitability.
Exide Industries share price traded 1.6% higher at ₹380.780 at 11:45 AM on the NSE. The stock opened at ₹388 higher than ₹382 at its previous close.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 16, 2025, 11:43 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
