Exide Industries Ltd. has announced additional investment of around Rs 100 crore in its wholly-owned subsidiary Exide Energy Solutions Ltd., according to an exchange filing on Tuesday.
With the fresh infusion of funds, the total investment made by the company in its arm now stands at Rs 3,052 crore, it added.
EESL has allotted a total 2.77 crore equity shares of face of value of Rs 10 each, at a premium of Rs 26 per share, aggregating to Rs 99.9 crore on rights basis to Exide Industries, the filing stated.
EESL is in the process of setting up a green field plant in Bengaluru for manufacturing and selling lithium-ion battery cells, modules and pack business. The fresh investment is aimed at meeting the various funding requirements for this project, Exide Industries said.
Notably, EESL was incorporated on Mar. 24, 2022, and is engaged in the business of manufacturing and selling lithium-ion battery cells, modules and packs for India's electric vehicle market and stationary applications.
Shares of Exide Industries, the listed parent, closed 0.6% lower at Rs 425.8 apiece on the NSE, compared to 0.11% decline at the benchmark Nifty 50. The stock has risen by 51.26% in the last 12 months and by 33.96% on a year-to-date basis.
Ten out of the 22 analysts tracking the company have a 'buy' rating on the stock, six recommend a 'hold' and six suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 9.8%.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
