Exide Industries Injects ₹100 Crore into Subsidiary via Rights Issue

On August 20, 2025, Exide Industries Limited, a prominent battery manufacturer, announced a ₹100 crore investment in its wholly owned subsidiary, Exide Energy Solutions Limited (EESL), through a rights issue.

Details of the Investment

The capital infusion was executed by subscribing to 2.5 crore equity shares of ₹10 each, issued at a premium of ₹30 per share. With this addition, Exide’s total investment in EESL now totals ₹3,802.23 crore, while the company’s 100% ownership stake in the subsidiary remains unchanged.

The transaction was carried out on an arm’s length basis and did not affect Exide’s 100% ownership in EESL. No additional regulatory approvals were necessary for the equity allotment, which was completed on August 20, 2025

Purpose of Fresh Equity Infusion

Exide Industries stated that the new equity capital will support EESL’s greenfield project in Bengaluru, which aims to establish large-scale lithium-ion cell manufacturing capabilities. The funding will also address the subsidiary’s broader business expansion requirements.

Also Read: Ola Electric Shares Fell 7% After Sharp Two-Day Rally Following Release of VAHAN Data

About Exide Energy Solutions Limited (EESL)

Incorporated in March 2022, EESL specialises in manufacturing and selling lithium-ion battery cells, modules, and packs targeted at India’s electric vehicle market and stationary energy storage applications. As of March 31, 2025, EESL’s paid-up equity share capital stood at ₹1,254.21 crore, with a net worth of ₹2,738.06 crore. For the fiscal year 2025, the company reported a turnover of ₹116.89 crore and a loss after tax of ₹209.12 crore.

EESL’s turnover has shown growth, with ₹239.14 crore in FY24 and ₹112.05 crore in FY23, following the merger of Exide Energy Private Limited into the subsidiary. The company operates exclusively within India and focuses on producing advanced chemistry battery cells—including cylindrical, pouch, and prismatic formats—as well as assembling modules and packs.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.