Battery manufacturer invested Rs 99,99,99,972 by way of subscription in the equity share capital of its wholly owned subsidiary on rights basis

Battery Manufacturer Invests Rs. 99.99 Crore in Wholly Owned Subsidiary EESL

On 12th November 2024, Exide Industries Limited (EIL) announced an investment of Rs. 99.99 crore in its wholly owned subsidiary, Exide Energy Solutions Limited (EESL). This investment was made through a rights issue, and the total investment by EIL in EESL now stands at Rs. 2,952.24 crore.

Details of the Investment

EESL issued 2,77,77,777 equity shares with a face value of Rs. 10 each at a premium of Rs. 26 per share. The rights issue raised Rs. 99.99 crore for the company, which will be used to fund its ongoing projects and growth plans.

EESL’s Business and Financial Overview

EESL, which was incorporated on 24th March 2022, specializes in manufacturing lithium-ion battery cells, modules, and packs for electric vehicles and stationary applications. As of 31st March 2024, the company reported a turnover of Rs. 239.14 crore, a net worth of Rs. 1,981.56 crore, and a loss after tax of Rs. 149.45 crore.

Funding for Greenfield Project in Bengaluru

The investment by EIL is part of EESL’s strategy to fund a greenfield project in Bengaluru, which will focus on manufacturing and selling lithium-ion batteries. The funds raised through the rights issue will help meet the financial requirements for this project.

Shareholding Structure Remains Unchanged

Despite this new investment, EIL’s shareholding in EESL remains unchanged at 100 per cent. The current funding will strengthen EESL’s position in the growing electric vehicle and energy storage markets.

Turnover Growth of EESL

EESL’s turnover has seen growth over the past few years. In FY 2023-24, the company reported a turnover of Rs. 239.14 crore, up from Rs. 112.05 crore in FY 2022-23. The company did not report any turnover in FY 2021-22, as it merged with Exide Energy Private Limited (EEPL).

Exide Industries Stock Performance

Exide Industries has shown impressive stock performance in recent months. Year-to-date (YTD), the stock has delivered a return of 35 per cent, reflecting strong investor confidence. Over the past year, the stock has delivered a return of 60 per cent, highlighting the company's growth prospects.

Note: This is not an investment recommendation. Please perform due diligence before making any investment.