Exide invests Rs. 500 million in EESL to expand EV battery capacity
Autocar Professional, 30 Jan '26
Exide Industries has made an additional equity investment of Rs. 500 million (US$ 5.4 million) in its wholly-owned subsidiary, Exide Energy Solutions Limited (EESL), through the subscription of equity shares on a rights basis.
The investment maintains Exide Industries' 100% shareholding in the subsidiary, with no change in the ownership structure.
EESL allotted 12.5 million equity shares at Rs. 10 per share, with a premium of Rs. 30 per share, aggregating to Rs. 500 million.
With this infusion, the cumulative investment by Exide Industries in EESL stands at Rs. 42.5 billion, including previous investments in the erstwhile merged subsidiary, Exide Energy Private Limited.
Incorporated on March 24th, 2022, EESL is engaged in the manufacturing and sale of lithium-ion battery cells, modules, and packs for India's electric vehicle market and stationary applications.
The subsidiary currently operates with a paid-up equity share capital of Rs. 13.7 billion and reported a net worth of Rs. 27.4 billion as of March 31st, 2025.
EESL recorded revenue of Rs. 1.2 billion for financial year 2024-25, with a loss after tax of Rs. 2.1 billion. Historical revenue figures show Rs. 2.4 billion in FY2023-24 and Rs. 1.1 billion in FY2022-23, following the merger with Exide Energy.
The fresh equity investment will fund EESL's greenfield manufacturing plant in Bengaluru and support various requirements for establishing production capabilities.
The facility will produce battery cells of advanced chemistry and multiple form factors, including cylindrical, pouch, and prismatic designs, along with battery modules, packs, and related components.
EESL's business scope includes manufacturing advanced chemistry battery cells, assembling and selling battery modules and packs, and undertaking related activities. The expansion aligns with India's growing electric vehicle market and rising demand for energy storage solutions.
The transaction was conducted at arm's length, with the promoter and promoter group having no interest beyond the disclosed investment.
No governmental or regulatory approvals were required for the rights issue, and the equity shares were allotted on January 28th, 2026.
