Exide shares gain 1.5% after company invests ₹75 cr in EV battery-making subsidiary, bringing total investment to ₹2,652 crore

EESL has allotted 2.08 crore equity shares of ₹10 each at a premium of ₹26 per share aggregating to Rs 75 crore on rights basis to Exide Industries, the company said.

The investment brings Exide’s infusion in its subsidiary to ₹2,652 crore.

Established in 2022 as a wholly-owned subsidiary, EESL is engaged in the business of manufacturing and selling lithium-ion battery cells, modules and packs for India's electric vehicle market.

In its FY24 annual report, Exide said EESL is in the final stages of establishing a lithium-ion cell manufacturing project.

“The equity investment in EESL on a rights basis is to fund the above green field project and meet its various funding requirements,” the company said in yesterday’s release.

Over 300 professionals are actively involved in various capacities to ensure timely project completion, Exide noted in its annual report.

“Efforts are underway to attract new customers and secure raw material suppliers, both domestically and internationally,” Exide said, noting that EESL had entered a non-binding MoU with Hyundai Motors and Kia for strategic cooperation in India’s EV market.

“Both the parties envisage to work and explore the possibility of development, production and supply of battery cells for Hyundai Motor’s electric vehicles dedicated to the Indian market.”

The company has also entered into technical collaboration focused on lithium-ion cell technology, with SVOLT Energy Technology Co. Ltd., a prominent high-technology global enterprise specialising in lithium-ion batteries and storage solutions for diverse applications.

In fiscal year 2024, EESL posted a loss of ₹149 crore on revenue of ₹239 crore.

Exide shares are up 91% over the past one year, outpacing the Nifty 27% gains during the same period, amid optimism over the company’s EV battery pack manufacturing plans.