Exide Industries Ltd (EIL), India’s largest conventional battery manufacturer, has infused ₹450 crore into its wholly owned subsidiary, Exide Energy Solutions Ltd (EESL), via a rights subscription to equity shares. Following this transaction, EIL’s total investment in EESL now stands at ₹4,802.23 crore, with its 100% shareholding in the subsidiary remaining unchanged.
Equity Infusion Details
EESL gave out 112.5 million equity shares with a face value of ₹10 each and a premium of ₹30 per share, which added up to a total investment of ₹450 crore. The consideration was made entirely in cash. Since the allotment was on a rights basis exclusively to the parent company, EIL retains full ownership of EESL.
Focus on EV and Energy Storage
Incorporated on 24th March 2022, EESL is dedicated to manufacturing and selling lithium-ion battery cells, modules, and packs for India’s electric vehicle (EV) sector and stationary energy storage applications. The subsidiary is building a new factory near Bengaluru that will make cylindrical, pouch and prismatic battery cell formats. The recent capital infusion is intended to fund this greenfield project and meet EESL’s broader funding requirements as it scales operations.
Financial Snapshot of EESL (FY2024–25)
- Paid-up share capital: ₹1,504.21 crore
- Net worth: ₹2,738.06 crore
- Revenue: ₹116.89 crore (FY25) vs ₹239.14 crore (FY24)
- Loss after tax: ₹209.12 crore
- Total cumulative investment by EIL: ₹4,802.23 crore
The finances show that this is a capital-intensive, pre-scale manufacturing business. EESL lost money in FY25 while getting ready to increase production of lithium-ion cells in India. EIL is still strongly supporting its EV battery subsidiary, even though its revenue is down and it lost money. This shows that the company is committed to India’s clean energy transition and the growth of the EV ecosystem.
This investment underscores EIL’s strategic push into domestic lithium-ion cell manufacturing, aligning with India’s growing EV and renewable energy ambitions.
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