Exide Industries allocates Rs 100 Crore to its wholly owned subsidiary EESL.

Exide Industries Limited (EIL) has invested a significant amount of Rs 100 crore in its self owned subsidiary, called Exide Energy Solutions Limited (EESL), which is done on a rights basis. This investment was allocated on July 22, through an initial subscription of Rs 2.5 crore equity shares of Rs 10 each at an exclusive premium of Rs 30 per share. 

Followed by this investment, the total investment amount allocated by EIL in ESSL is Rs 3,702 crore, which includes share premium and investment in the combined entity called Exide Energy Private Limited (EEPL). However there is no considerable change in EIL’s shareholding in EESL, which stands at 100%. 

Talking about EESL, it was formed on March 24, 2022, particularly for focussing on manufacturing and selling lithium-ion battery cells, modules, and battery packs for EVs and stationary storage applications. Till March 31, 2025, the paid-up equity share capital was estimated at Rs 1,229.21 crore with a combined net worth of Rs 2,783.06 crore. 

Objectives of Equity Investment 

The turnover for FY25 was standing at Rs 116.89 crore, with a loss after tax of Rs 209.12 crore. The particular equity investment is made to back EESL's operational greenfield project ongoing at Bengaluru, which is aimed at establishing a manufacturing facility and selling of lithium-ion battery cells and other related products. 

This transaction signifies as a related party transaction, because EESL is a completely wholly owned subsidiary of EIL. As per the company, the particular transaction has been implemented on an arm’s length basis, as there are no government approvals or special permissions required for this transaction. 

Looking at the previous years, the EESL’s turnover was registered at Rs 239.14 crore for FY 2023-24 and Rs 112.05 crore in FY 2022-23. All these figures also include the performance analysis of Exide Energy Private Limited, which was combined with EESL.