On July 16, 2024, Exide Industries Limited announced an investment of ₹74,99,99,988 in its wholly-owned subsidiary, Exide Energy Solutions Limited, through a rights issue. This brings Exide Industries’ total investment in EESL to ₹2577.24 crore.
Exide Energy Solutions Limited (EESL), as a wholly owned subsidiary of Exide Industries Limited (EIL), recently allotted 2,08,33,333 equity shares at ₹10 each, along with a premium of ₹26 per share, totalling ₹74,99,99,988 to EIL on a rights basis. This transaction constitutes a related party transaction due to EESL’s status within EIL’s corporate structure. The allocation was executed at arm’s length, and aside from this arrangement, there are no additional interests or involvements from the promoter group in EESL.
EESL specialises in manufacturing battery cells using advanced chemistry and various form factors, including cylindrical, pouch, and prismatic types. The company also assembles and sells battery modules and packs and related activities within the energy solutions sector.
Exide Industries Limited (EIL) ‘s recent equity investment in Exide Energy Solutions Limited (EESL) through a rights issue primarily aims to fund EESL’s greenfield project in Bengaluru. This project focuses on manufacturing and selling lithium-ion battery cells, modules, and packs, aligning with EESL’s core business objectives. The investment also aims to meet various funding requirements for the project. EIL’s shareholding in EESL remains unchanged at 100% following this transaction.
No specific governmental or regulatory approvals were required for the equity investment in EESL.
Exide Energy Solutions Limited (EESL), a wholly owned subsidiary of Exide Industries Limited (EIL), was established on March 24, 2022. EESL manufactures and sells lithium-ion battery cells, modules, and packs for India’s electric vehicle market and stationary applications.
Exide Industries Limited, headquartered in Kolkata, India, is a leading multinational company specialising in storage batteries. Established in 1919, Exide is renowned as India’s largest manufacturer of lead-acid storage batteries and a prominent provider of power storage solutions. It offers reliable products for diverse applications.
On July 18, 2024, Exide Industries Ltd’s share price opened at ₹556.60, touching the day’s low of ₹547.55 as of 12:46 PM on the NSE.
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.
Published on: Jul 18, 2024, 5:46 PM IST
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