Shares of Exide Industries Ltd. rose by 3% to touch a day’s high of Rs 531.50 on 11th October after the firm announced a new Rs 100-crore infusion in its wholly-owned subsidiary, Exide Energy Solutions Ltd. (EESL), aimed at accelerating the construction of a greenfield facility in Bengaluru.

The new plant will focus on manufacturing and selling lithium-ion battery cells, modules, and packs, targeting India’s rapidly growing electric vehicles (EVs) and stationary energy storage markets.

This investment, raised through a rights issue, brings Exide’s total investment in EESL to Rs 2,852 crore. The fresh infusion is the second consecutive Rs 100-crore investment in recent months, highlighting Exide’s strategic aim to become a key player in the EV ecosystem.

EESL, incorporated in March 2022, has experienced significant growth in its early stages. For fiscal 2024, it reported a turnover of Rs 239.14 crore, more than doubling its revenue from Rs 112.05 crore in the previous year.

Exide Energy’s lithium-ion battery subsidiary gained attention in April when Hyundai Motor Company and Kia Corporation signed an agreement to localise EV battery production with the company.

The upcoming Bengaluru plant will cater to both the EV market and the growing demand for stationary energy storage solutions, which are expected to expand with increasing renewable energy adoption in India.

On the financial side, Exide Industries reported a net profit of Rs 280 crore for the June quarter, supported by revenues of Rs 4,313 crore.

At 12:30 PM, the shares of Exide Industries were trading 3.58% higher at Rs 530.50 on NSE.

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