This S&P BSE 500 auto ancillary stock is one of two only large battery technology – design, manufacture & sellers. On Thursday, the company’s shares opened flat but now trades in green, up 40 bps. Currently the stock is 6% away from 52 week high and has been experiencing strong momentum since March 2023, rising 52% since.
The shares of this stock are trading at Rs. 262.2 which is 2% away from its 20 day moving average and 27% above its 200 day moving average with a market cap of Rs. 22,300 crore.
In a filing dated 20th September 2023, Exide Industries Ltd (“Exide”) has invested Rs. 124,99,99,980/- or approximately Rs. 125 crore by way of subscription in the equity share capital of its wholly owned subsidiary, Exide Energy Solutions Limited on a rights basis. There is no change in the shareholding percentage of Exide Industries in Exide Energy Solutions pursuant to such an acquisition which stands currently at 100%. The transaction involves subscription of 4,03,22,580 equity shares of par Rs. 10 at a premium of Rs. 21, i.e, Rs. 31 per share.
Except from what is mentioned above, the Promoter/promoter group/group companies have no interest in the transaction. The said transaction is at arm’s length. Exide Energy Solutions is in the process of setting up a plant for manufacturing & selling lithium-ion battery cells, modules and pack business. Exide Industries has made further investment by subscribing to equity shares offered by EESL on a rights basis to fund its green field project and meet various funding requirements.
Recently Prabhudas Lillnder gave an ACCUMULATE recommendation on the stock with a target of Rs. 295, indicating a 13% upside as of now. Exide Industries designs, manufactures, markets, and sells lead acid storage batteries in India and internationally. The company’s shareholding comprises 46% promoter holding, 13% and 20% respectively held by FIIs & DIIs and the rest being held by the public.
Written by Sandeep R
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