Battery maker Exide Industries Ltd (EIL) on Tuesday (December 17) said it has invested ₹100 crore in its wholly-owned subsidiary, Exide Energy Solutions Ltd (EESL), through a rights issue of 2.77 crore equity shares.
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“This is to inform you that on 17th December 2024, Exide Industries Limited (company/EIL) has invested Rs 99, 99,99,972/- (Rupees Ninety-Nine crores ninety-nine lakhs ninety-nine thousand nine hundred and seventy-two only) by way of subscription in the equity share capital of its wholly owned subsidiary, “Exide Energy Solutions Limited” (hereinafter referred as ‘EESL’), on rights basis,” Exide Industries said in a regulatory filing.
This investment brings the total capital infusion into EESL to ₹3,152.24 crore. The latest move aims to fund EESL’s greenfield project in Bengaluru, where the company is setting up a manufacturing facility for lithium-ion battery cells, modules, and packs for India’s growing electric vehicle market.
Also Read: Exide Industries Q2 a miss on all fronts but management bets on export demand
EESL, which was incorporated in March 2022, is focused on advanced battery technology, catering to both electric vehicles and stationary applications. The company’s net worth stood at ₹1,981.56 crore as of March 2024, with a turnover of ₹239.14 crore for financial year 2023-24.
Despite a loss of ₹149.45 crore for the year, EESL’s long-term prospects remain strong due to the increasing demand for clean energy solutions in the country. The investment is part of Exide’s strategy to bolster its position in the energy storage segment, with a focus on advanced battery technologies.
Following this rights issue, Exide Industries’ shareholding in EESL remains at 100%. Shares of Exide Industries Ltd ended at ₹450.85, down by ₹9.30, or 2.02%, on the BSE.
Also Read: Exide Industries’ lithium-ion battery facilities in Bengaluru and Gujarat are nearing completion
(Edited by : Shoma Bhattacharjee)
