Exide plans private equity placement

Battery major Exide Industries is planning preferential allotment of shares on private placement basis for the first time in its history.

The decision regarding the issue will be taken at a board meeting on November 25. Exide officials confirmed the move and said the company would issue around 40 lakh shares on a preferential basis.

"Exide is not going to increase its authorised capital. The issue will be within the limit we are having now," an official said.

Exide currently has a paid-up equity of Rs 71 crore and an authorised capital of Rs 75 crore. According to the official, the final decision regarding the price and number will be taken on Thursday.

However, the official claimed that the preferential allotment will not be for the promoters. Rahejas, the promoters of Exide have around 51.3 per cent, which they hold through Chloride Eastern Ltd.

"The issue is not aimed at the promoters. There will be a private placement," he added. Incidentally, the battery major is now expanding its capacity in Haldia. Exide is planning to invest around Rs 40-50 crore in this expansion drive.

Besides, it is planning to set up a lead smelting plant in Central India. This will be a joint venture (JV) of overall investment of around Rs 120 crore for 40,000 tonne capacity. The company is now in talks with with three multinationals, one each from Germany, Russia and Malaysia, for the project.