Shares of Exide Industries Limited gained over a percent to hit a fresh record high of Rs 549 on June 13 afternoon trade following the company's Rs 75 crore investment in Exide Energy Solutions Limited (EESL), an existing wholly subsidiary.
The latest capital infusion will amount to the the total investment made by the battery major at Rs 2,452 crore, the company said in a regulatory filing on June 12.
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The subsidiary is involved in the manufacturing battery cells of advanced chemistry as well as assembling, selling battery modules, battery packs and other related activities.
In late May, JPMorgan raised the price target to Rs 520 as it sees further upside in the counter. The stock has, however, breached the recommended price. The brokerage believes that the company is well-positioned to deliver across all business verticals. "Industrial demand, especially in lead acid batteries, should not be underappreciated," analysts at JPMorgan said.
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In April, two South Korean auto majors Hyundai Motor Company (HMC) and Kia Corporation announced a partnership with the homegrown battery maker for electric vehicle battery localisation in the country.
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Morgan Stanley is of the view that Exide shares could rise significantly over the next ten years. Furthermore, the government's support for Made in India EVs can help the company become a leading player in battery cell localisation.
At about 12:50 pm, shares of the company were trading at Rs 546, higher 0.8 percent from the previous close on the NSE. Exide shares have been on a stellar run, gaining a whopping 81 percent since in the last the three months.
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