Waaree Technologies to acquire Lithium Battery Business; Stock jumps 5%

5 Sep 2022 , 01:41 PM

Waaree Technologies Limited has informed that the Board of Directors at its meeting have approved the acquisition of the Lithium Battery Business Undertaking from related party WAAREE ESS Pvt Limited together with all its assets and liabilities as the Board may deem fit at a consideration which would be restricted to a maximum sum of Rs20,00,00,000/- (Rupees Twenty Crores Only) i.e. an amount of Rs20,00,00,000/- is an estimated maximum amount of the consideration and the exact consideration will be determined based on the net value of assets and liabilities forming part of the Undertaking of the Seller as on the Effective Date i.e. October 01, 2022.

As on July 31, 2022, WAAREE ESS Private Limited has a turnover of Rs10,25,68,250/- (Ten Crores Twenty-Five Lakhs Sixty-Eight Thousand Two Hundred and Fifty only). The net worth of the Lithium Battery Business Undertaking of the Seller as on July 31, 2022 is Rs11,43,40,023/- (Eleven Crores Forty-Three Lakhs Forty Thousand and TwentyThree Only) and of the Seller (as a whole) is Rs1,31,87,352/-(One Crore Thirty-One Lakhs Eighty-Seven Thousand Three Hundred and Fifty Two Only).

On account of the potential growth of the Lithium battery business due to exponential increase in demand for battery operated devices, equipment and components used in or required for industrial, transport, commercial and consumptive purpose in India, the management of WTL desires to purchase the lithium battery business from WESS and house the same in in the Company to emanate the benefits of:

• enhanced visibility of the business;
• access to Capital markets to boost further business growth;
• liquidity to investors;
• transparency and efficacy.

WAAREE ESS Pvt Ltd was incorporated on December 31, 2019. The company is mainly into manufacturing of Energy Storage Systems from Lithium-ion Cells and having its manufacturing facility at Surat, Gujarat with a battery production capacity of 400MWH+ per annum.

At around 1:46 PM, Waaree Technologies was trading at Rs120.75 per share higher by 5% on the BSE.

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