Exide Industries Invests Rs 100 Crore More In EV Battery-Focussed Arm
Exide Industries has so far invested Rs 2,852 crore in EESL, its wholly-owned arm which is in the process of setting up a green field plant in Bengaluru.
Exide Industries' Kolkata headquarters (Source: company)
Exide Industries Ltd., a leading acid-battery supplier in India, on Friday announced an additional investment of Rs 100 crore in its wholly-owned arm, Exide Energy Solutions Ltd., on a rights basis.
This takes the company's overall investment in EESL to Rs 2,852 crore, an exchange filing stated.
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 Company and Kia Corporation announced a pact with the company for EV battery localisation.
The fresh infusion of Rs 100 crore into EESL was reported a month after Exide Industries pumped the same amount into the subsidiary company.
The investment comes at a time when EESL is in the process of setting up a green field plant in Bengaluru for manufacturing and selling lithium-ion battery cells and modules.
"The equity investment is to fund the above green field project and meet its various funding requirements," Exide Industries said.
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 closed 1.39% lower at Rs 512.15 apiece on the NSE, compared to a marginal increase of 0.07% in the benchmark Nifty 50.
The Kolkata-headquartered company's stock has risen by 61% year-to-date and by 98% over the past 12 months.
Nine out of the 23 analysts tracking the company have a "buy" rating on the stock, six suggest a "hold," and eight recommend a "sell." The average of 12-month analysts' price target implies a potential downside of 2.1%.
