Leading Battery Manufacturer in India Invests Rs 100 Crore in Clean Energy Subsidiary
The investment is part of a rights issue in which EESL has allotted 2,77,77,777 equity shares of Rs 10 each, at a premium of Rs 26 per share, totaling Rs 99.99 crore.
Leading battery manufacturer Exide Industries has made a further investment in its wholly owned subsidiary, Exide Energy Solutions (EESL), with an investment of Rs 99.99 crore. This investment is part of a rights issue in which EESL has allotted 2,77,77,777 equity shares of Rs 10 each, at a premium of Rs 26 per share, totaling Rs 99.99 crore. This brings the total investment by Exide Industries in EESL to Rs 3,152.24 crore. Exide Industries’ shareholding in EESL remains unchanged at 100 per cent.
The funds raised through this investment will be used to support EESL’s greenfield project in Bengaluru, where the subsidiary is setting up a manufacturing plant for lithium-ion battery cells, modules, and packs. EESL’s focus is on catering to the growing electric vehicle market in India, as well as meeting the demand for stationary energy storage solutions.
In the afternoon session on December 18, Exide Industries' share price was trading at Rs 445.50, down by 1.24 per cent amidst broader weakness in the market.
EESL’s business activities are aimed at supporting India’s transition to sustainable energy, particularly through the development of lithium-ion battery solutions. As part of this strategy, Exide Industries has also partnered with GreenLine Mobility Solutions to supply 1,000 liquefied natural gas (LNG)-powered trucks to help reduce vehicular emissions.
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Q2 FY25 performance
For the July-September quarter, Exide Industries reported a 3.8 per cent increase in its standalone profit after tax, reaching Rs 298 crore. This growth was supported by a 3.91 per cent rise in revenue from operations, which amounted to Rs 4,267.30 crore.
About the Company
Exide Industries Ltd is a prominent manufacturer of storage batteries and related products in India, catering to diverse sectors. The company produces batteries for automotive applications, including two-wheelers, four-wheelers, three-wheelers, e-rickshaws, and home UPS systems, with capacities ranging from 2.5 Ah to 260 Ah for vehicles and non-vehicular uses. Additionally, it manufactures industrial batteries with capacities spanning from 7 Ah to 3200 Ah for various applications, including specialized submarine batteries. As a market leader, Exide dominates the storage battery segment across automotive, industrial, and submarine categories in India.
Disclaimer: The article is for informational purposes only and not investment advice.