On 15 January, 2025, EIL announced that it will invest in its subsidiary company, EESL, the sum of ₹149.99 crore.
To this investment, a rights issue was undertaken since the reason behind it is that Exide’s equity stake in EESL rose to ₹3,302.23 crore
EIL applied for 4.17 million equity shares of EESL at the face value of ₹10 per share with a premium of ₹26 per share. EESL is incorporated in March 2022. It has a focus on manufacturing lithium-ion battery cells, modules, and packs for electric vehicles and stationary applications in India.
The funds raised will be for supporting the greenfield manufacturing facility in Bengaluru to produce advanced battery cells in EESL. This arm’s length transaction does not have any regulatory approval and continues to maintain Exide’s 100% ownership in EESL.
The investment was further capital infusion by ₹99.99 crore during November 2024 wherein EESL equity stake in hands of Exide increased to ₹3,052.24 crores.
After absorbing Exide Energy Private Limited it reported the revenue of ₹ 239.14 crores FY 2023-24 of the year under review
Notwithstanding this it incurred net loss of ₹ 149.45 crores on the back of growth during fiscal. This type of strategic investment aligns with the mission of Exide in helping further advance the electric vehicle ecosystem of India while building battery capacity locally in association with ‘Make in India.’.
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