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Exide Industries Invests ~₹75 Crore in Subsidiary EESL to Fuel Lithium-Ion Battery Project

21 June 20243 mins read by Angel One
Exide Industries made an investment of ₹74,99,99,988 crore in its subsidiary to increase its presence within India’s Electric Vehicle market.
Exide Industries Invests ~₹75 Crore in Subsidiary EESL to Fuel Lithium-Ion Battery Project
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Exide Industries Limited (Exide), a leading manufacturer of storage batteries, announced a significant investment in its wholly-owned subsidiary, Exide Energy Solutions Limited (EESL), on June 12, 2024. This strategic move underscores Exide’s commitment to the growing electric vehicle (EV) market in India.

Equity Injection for Growth

Exide invested ₹74,99,99,988 through a rights issue, a method that allows existing shareholders to purchase additional shares without dilution of ownership. This investment brings Exide’s total investment in EESL to ₹2,452.24 crore.

Financing Green Ambitions

The primary purpose of this equity infusion is to support EESL’s greenfield project in Bengaluru. This new facility will focus on the manufacturing and sale of lithium-ion battery cells, modules, and packs – critical components for electric vehicles and stationary energy storage applications. By providing the necessary funding, Exide is actively contributing to developing India’s EV ecosystem.

Transparency and Fairness

Exide emphasises that this transaction is entirely at arm’s length, with no involvement from the company’s promoters or group entities. This ensures a fair and transparent process for all stakeholders.

Looking Ahead

Exide’s investment in EESL signifies a well-timed strategic move to capitalise on the increasing demand for lithium-ion batteries in India. By supporting EESL’s greenfield project, Exide positions itself as a key player in the country’s transition towards a cleaner and more sustainable future. This investment is expected to not only benefit Exide’s long-term growth prospects but also contribute to the overall development of India’s EV industry.

About Exide Energy Solutions Limited (EESL)

Established in March 2022, EESL is a wholly-owned subsidiary of Exide Industries Limited. The company is specifically dedicated to the manufacturing and sale of lithium-ion battery solutions that cater to the burgeoning Indian EV market and stationary energy storage needs.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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