Exide Industries invests INR 450 crore in lithium battery arm

Exide Industries Ltd has invested INR 450 crore into its wholly owned subsidiary Exide Energy Solutions Ltd (EESL) through a rights subscription to equity share capital.

Following the transaction, Exide’s total investment in EESL has reached INR 4,802.23 crore. The company said there is no change in its shareholding in the subsidiary, which remains at 100%.

Incorporated on March 24, 2022, EESL is focused on manufacturing and selling lithium-ion battery cells, modules, and packs for India’s electric vehicle and stationary storage markets. The company is currently developing a greenfield manufacturing facility in Bengaluru to produce lithium-ion cells, modules, and battery packs.

Exide said the equity infusion will be used to fund the greenfield project and meet EESL’s various funding requirements.

As part of the transaction, EESL allotted 112.5 million equity shares with a face value of INR 10 each, issued at a premium of INR 30 per share, aggregating to INR 450 crore.