Exide Industries shares gain on agreement for solar power generation

Shares of Exide Industries Ltd surged in early trade today after the automotive battery manufacturer said it inked an agreement to buy a 26 percent equity stake in Clean Max Arcadia, a special purpose vehicle (SPV) promoted and incorporated by Clean Max Enviro Energy Solutions, for the generation and supply of solar power. Exide Industries has agreed to invest Rs. 5,34,59,929 or Rs 5.34 crore in Clean Max Arcadia. 

Exide Industries shares, which hit their all-time high of Rs 398.05 on April 9 rose nearly a percent to Rs 386.95 in early deals today against the previous close of Rs 383.80 on BSE.

Market cap of Exide Industries rose to Rs 32,505 crore. Total 7.72 lakh shares of the firm changed hands amounting to a turnover of Rs 27 crore on BSE. The stock hit a 52-week low of Rs 179 on April 10, 2023.

Through the SPV, the company will promote renewable energy on a long-term basis by qualifying as a captive consumer for a solar capacity of 14.85 MWp at its factory in Bawal, Haryana.

The proposed transaction does not fall within Related Party Transaction. Indicative time period for completion of the Acquisition is April 30, 2024

The objective of this investment is to promote renewable energy in the operations of the company by qualifying as a captive consumer. Further, the current arrangement will also optimise overall power cost at the factory situated in Bawal, Haryana. 

Clean Max Arcadia Private Limited, is incorporated as a special purpose by Clean Max Enviro Energy Solutions Pvt Ltd having its registered office in Mumbai.