Exide Industries Ltd (EIL), a leading battery manufacturer, announced on Friday, September 13, that it has invested ₹100 crore in its wholly-owned subsidiary, Exide Energy Solutions Ltd (EESL), via a rights issue. The company confirmed this development in a regulatory filing, stating, “On 13th September 2024, Exide Industries Ltd invested ₹99.99 crore by subscribing to equity shares of its wholly-owned subsidiary Exide Energy Solutions Limited on a rights basis.”
With this latest investment, the total funding from the company in EESL has now reached ₹2,752.24 crore. However, the ownership stake of the company in EESL remains unchanged at 100%. “Despite the additional investment, the company’s shareholding in EESL remains at 100%,” the statement added.
Founded in March 2022, EESL is focused on the manufacturing of lithium-ion battery cells, modules, and packs for India’s expanding electric vehicle (EV) market, as well as for stationary applications. The company is currently developing a greenfield manufacturing facility in Bengaluru, which will produce advanced chemistry battery cells in cylindrical, pouch, and prismatic formats. This investment is aimed at supporting EESL’s funding needs for the Bengaluru project.
As of March 31, 2024, EESL reported a net worth of ₹1,981.56 crore and a turnover of ₹239.14 crore. Despite reporting a net loss of ₹149.45 crore for the financial year, EESL’s focus on lithium-ion battery production positions it well to capitalize on the rising demand for EVs and renewable energy storage solutions in India.
Through the rights issue, EESL issued 2,77,77,777 equity shares to Exide Industries at ₹10 per share, with an additional premium of ₹26 per share. These funds will be instrumental in expanding EESL’s production capacity, especially with the establishment of its Bengaluru plant.
Since EESL is a subsidiary of EIL, this transaction qualifies as a related-party deal but was executed on an arm’s length basis. Shares of the company closed at ₹485.65 on the BSE, reflecting a gain of ₹5.85, or 1.22%.
Exide Industries is known for its robust R&D capabilities, ensuring high-quality, reliable, and technologically advanced products. In line with the growing emphasis on green energy and sustainability, Exide Energy Solutions Limited, a subsidiary of Exide Industries, focuses on developing innovative energy storage systems, particularly lithium-ion batteries. This strategic move aims to cater to the increasing demand for renewable energy solutions, electric mobility, and grid storage, positioning Exide at the forefront of India’s energy transition.
