The share of these battery manufacturers gained up to 1 percent after the company announced the investment of Rs.100 crore through subscription in the equity share capital of its wholly-owned subsidiary.
With a market capitalization of Rs 25,002.75 Crores, The shares of Exide Industries Ltd, were trading at Rs 295.55 a share, a decrease of 0.56 percent from the previous closing price of Rs 296.15 a share.
According to the exchange filing, Exide Industries Ltd invested Rs. 100 Crore through subscription in the equity share capital of its wholly owned subsidiary, Exide Energy Solutions Ltd, on a rights basis. With this investment, the total investment made by the Company in EESL stands at Rs. 1,780.01 crore. There is no change in the shareholding percentage of the Company in EESL under such an acquisition.
Additionally, EESL has allotted 3,22,58,065 equity shares of Rs. 10 each at a premium of Rs. 21/- per share to Exide Industries Ltd, because EESL is in the process of setting up a plant for manufacturing & selling Lithium-ion battery cell, modules and pack business.
Looking into the company’s performance revenue increased by 13 percent from Rs 3,841 Crore in Q2FY23 to Rs 4,372 Crore in Q2FY24. During the same period, net profit increased by 13 percent from Rs 241 crore to Rs 270 Crore.
Exide Industries Ltd. operates 10 manufacturing facilities, produces 54 million automobile batteries annually, supplies 5.8 billion watt-hours of industrial power annually, and has three recycling facilities with a capacity of 252 KMT of lead recycling annually.
Throughout the year, orders for lithium-ion packs and modules from the company’s subsidiary totaled about Rs 700 crore. Comparably, Exide Energy Solutions Limited, a 100% subsidiary that specializes in the production of lithium-ion cells, has already gotten a head start on building the nation’s single-site, multi-gigawatt lithium-ion cell manufacturing facility.
In India, Exide Industries Ltd is mostly involved in the production of storage batteries and related goods.
Written by:- Abhishek Singh
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