Exide to invest Rs 300 cr more

Exide Industries will infuse an additional Rs 300 crore into ING Vysa Life to maintain its holding at 50 per cent in the insurance outfit.

ING has 26 per cent in the life insurance outfit, while the remaining 24 per cent is with Gujarat Ambuja and Enam Securities.

S B Ganguly, chairman and CEO of Exide Industries, said, "We shall not dilute our holding below 50 per cent in ING Vysa Life. And for this, we shall infuse more capital whenever required."

According to the initial agreement, the company was supposed to invest Rs 400 crore in ING Vysa Life over a period of time, Ganguly said.

But with revised projections, Exide is likely to invest Rs 700 crore in the insurance company.

The battery major has invested Rs 257 crore for its 50 per cent stake in ING Vysa Life. And it is likely to invest Rs 100 crore in 2007 as ING Vysa Life will go in for capital expansion to keep pace with the growth.

On the valuation of Exide's investment in the life insurance outfit, he said Hong Kong-based CLSA had valued the holding at Rs 800 crore in September this year.