Exide Industries infuses ₹74.99 Crore in EESL

21 Aug 2024 , 01:10 PM

Exide Industries Limited would invest ₹74.99 Crore in its wholly owned subsidiary, Exide Energy Solutions Limited (EESL). This investment, made through the subscription of equity shares on a rights basis, is part of Exide’s continuous plan to increase its position in India’s electric vehicle (EV) and energy storage markets.

EESL, established on March 24, 2022, manufactures and sells lithium-ion battery cells, modules, and packs. These solutions are designed to service India’s burgeoning EV sector as well as other stationary applications. Exide Industries’ overall interest in EESL now stands at ₹2,652.24 Crore after this fresh investment.

Exide Industries’ ownership portion in EESL remains unchanged as a result of the arm’s-length transaction. Exide subscribed for 2,08,33,333 equity shares issued at a premium of ₹26 per share.

In the fiscal year ended March 31, 2024, EESL reported a turnover of ₹239.14 Crore and a net value of ₹1,981.56 Crore. The company specialises in innovative battery chemistry, creating cylindrical, pouch, and prismatic batteries that are critical for energy storage solutions in the country.

Exide Industries’ investment is consistent with its overall aim to strengthen its position in the energy storage sector. The demand for EVs and renewable energy storage in India is increasing, creating opportunities for EESL’s products and technology.

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