Exide Inds gains after investing Rs 40 cr in subsidiary via right issue

Exide Industries added 2.30% to Rs 329.10 after the battery manufacturer has invested Rs 39.99 crore in its wholly-owned subsidiary, Exide Energy Solutions (EESL) through a rights issue.

Exide Energy Solutions (EESL), engaged in the business of manufacturing & selling lithium-ion battery cells, modules and packs for India's electric vehicle market and stationary applications.

The company has made further investment by subscribing to equity shares offered by EESL on a rights basis to fund its green field project and meet various funding requirements of EESL.

EESL has allotted 1,29,03,225 equity shares of Rs 10 each were acquired at a premium of Rs 21 each aggregating to Rs 39.99 crore on right basis to the company .

The company is holding 100% share capital of EESL and with the current investment, the companys shareholding in EESL will remain unchanged.

Exide Industries is primarily engaged in the manufacturing of storage batteries and allied products in India.

The battery manufacturer reported 7.65% increase in standalone net profit to Rs 240.27 crore in Q3 FY24 as compared to Rs 223.19 crore recorded in Q3 FY23. Revenue from operations stood at Rs 3,840.53 crore in Q3 FY24, registering a growth of 12.56% from Rs 3,412.13 crore reported in the same period a year ago.

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