Battery major Exide Industries Limited (EIL) has invested INR 100 crore in its wholly owned subsidiary, Exide Energy Solutions Limited (EESL) through a right issue. With this investment, the total investment made by the Company in EESL stands to INR 2,752.24 crore.
“EESL has allotted 2,77,77,777 nos. equity shares of INR 10/- each at a premium of INR 26/- per share aggregating to INR 99,99,99,972/- (Rupees Ninety-Nine crores ninety nine lakh ninety-nine thousand nine hundred and seventy-two only) on rights basis to EIL,” stated the company’s exchange filings.
The company has specified that this investment will not affect the shareholding of EESL, it will remain unchanged.
Where will the fund be utilised?
EESL is currently under the process of setting up a green field plant at Bengaluru for the manufacturing and selling of lithium-ion battery cells, modules, packs for the Indian electric vehicle market. The equity investment in Exide Energy Solutions will be utilised to fund the green field project and to address other funding requirements.
Exide Energy Solutions incorporated in March 2022 deals with the manufacturing and selling of lithium-ion battery cells, modules, packs for the Indian electric vehicle market and stationary applications.
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