Exide Industries Ltd.'s unit signed an energy supply pact with special purpose vehicle Clean Max Beta Pvt. The deal entitles the SPV to supply solar power of 17 MWp to the company's unit, Exide Energy Solutions Ltd., in the state of Karnataka under the captive user policy, according to an exchange filing on Tuesday.
The arm also signed a pact with the special purpose vehicle and its promoter, Clean Max Enviro Energy Solutions Pvt., to acquire a 26% stake in the special purpose vehicle for Rs 5.9 crore.
Exide Industries, last week, announced an additional investment of Rs 100 crore in its wholly-owned arm, Exide Energy Solutions Ltd., on a rights basis.
EESL, incorporated in March 2022, is engaged in the business of manufacturing and selling lithium-ion battery cells, modules, and packs for India's electric vehicle market and stationary applications.
EESL was in focus in April this year after Hyundai Motor Co. and Kia Corp. announced a pact with the company for EV battery localisation.
In fiscal 2024, EESL had logged a turnover of Rs 239.14 crore, which was more than double as compared to Rs 112.05 crore in the preceding year.
Shares of Exide Industries fell as much as 2.1% during the day to Rs 519.2 apiece on the NSE. It was trading 1.76% lower at Rs 521 apiece, compared to a 0.35% advance in the benchmark Nifty 50 as of 2:01 p.m.
The stock has risen 97% during the last 12 months and has advanced by 63% on a year-to-date basis. The relative strength index was at 58.
Nine out of the 23 analysts tracking the company have a 'buy' rating on the stock, six suggest a 'hold' and eight have a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 2%.
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