Exide Industries: Powering the future of mobility with strategic investment in the EV market

Exide Industries Limited, a prominent player in the battery manufacturing sector, has taken a strategic step towards expanding its presence in the rapidly growing electric vehicle (EV) market. On September 20, 2023, the company made a substantial investment of Rs 125 crore in its wholly-owned subsidiary, Exide Energy Solutions Limited (EESL), through a rights issue. This move aligns with EXIDE’s commitment to staying at the forefront of innovative energy solutions.

EESL incorporated in March 2022, is dedicated to the manufacturing and sale of lithium-ion battery cells, modules, and packs tailored for India’s burgeoning EV market and stationary applications. The subsidiary’s paid-up equity share capital stands at Rs 414.72 crore with a net worth of Rs 655.20 crore as of March 31, 2023. While EESL reported a loss of Rs 59.81 crore for the fiscal year ending March 31, 2023, its potential in the EV sector remains promising.

The acquisition of additional equity shares in EESL by EXIDE does not alter the parent company’s existing shareholding percentage, maintaining it at 100%. This ensures that EXIDE retains full control over its subsidiary’s operations and strategic direction.

Notably, this investment does not involve any related party transactions and the transaction is being conducted at arm’s length. Furthermore, the investment is aimed at supporting EESL’s ambitious greenfield project to establish a manufacturing facility for lithium-ion battery cells, modules, and packs. This strategic move will enable EESL to meet its funding requirements and contribute to the growth of the EV ecosystem in India.

With the EV market gaining momentum and the Indian government’s push for cleaner and more sustainable transportation solutions, EXIDE’s investment in EESL positions it to play a significant role in powering the future of mobility in India. The company’s commitment to cutting-edge battery technology and its willingness to invest in the EV segment signal its determination to remain a key player in the evolving energy landscape.

As Exide Industries continues to innovate and expand, it is poised to make a noteworthy impact on the EV market in India and contribute to the country’s sustainable energy goals. The scrip opened at Rs 261.75 and currently, it is trading at Rs 258.65, down by 1.18%. It has a 52-week high of Rs 280 and a 52-week low of Rs 152.75. Over the past one year shares of the company have increased their value by a staggering 59.12%. The company has a market capitalization of around Rs 22,000 crore.

Also read: Best Electric Vehicle (EV) Stocks in India 

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.