Waaree Technologies Ltd to acquire Lithium Battery Business

The Board of Directors of Waaree Technologies Limited at its meeting held today i.e., Friday, September 02, 2022 have approved the purchase / acquisition / slump purchase of the Lithium Battery Business Undertaking from related party M/s. WAAREE ESS Pvt Limited (the "Seller") together with all its assets and liabilities including the concerned licenses, permits, consents, approvals and the employees, as a going concern / on a slump sale basis on "as is where is basis" or in any other manner as the Board may deem fit at a consideration which would be restricted to a maximum sum of Rs. 20,00,00,000/- (Rupees Twenty Crores Only) i.e. an amount of Rs. 20,00,00,000/- is an estimated maximum amount of the consideration and the exact consideration will be determined based on the net value of assets and liabilities forming part of the Undertaking of the Seller as on the Effective Date i.e. 1st October, 2022 or as may be agreed between the Parties) post requisite approval from the shareholders of the Company at the ensuing Annual General Meeting for a combination of consideration other than cash (to be adjusted against trade receivables) and balance amount of consideration in cash.

As on 31st July 2022, WAAREE ESS Private Limited has a turnover of Rs. 10,25,68,250/- (Ten Crores Twenty-Five Lakhs Sixty-Eight Thousand Two Hundred and Fifty only). The net worth of the Lithium Battery Business Undertaking of the Seller as on 31st July 2022 is Rs 11,43,40,023/- (Eleven Crores Forty-Three Lakhs Forty Thousand and TwentyThree Only) and of the Seller (as a whole) is Rs. 1,31,87,352/-(One Crore Thirty-One Lakhs Eighty-Seven Thousand Three Hundred and Fifty Two Only).

On account of the potential growth of the Lithium battery business due to exponential increase in demand for battery operated devices, equipment and components used in or required for industrial, transport, commercial and consumptive purpose in India, the management of WTL desires to purchase the lithium battery business from WESS and house the same in in the Company to emanate the benefits of:

- enhanced visibility of the business;
- access to Capital markets to boost further business growth;
- liquidity to investors;
- transparency and efficacy.

WAAREE ESS Pvt Ltd was incorporated on 31st December, 2019. The company is mainly into manufacturing of Energy Storage Systems from Lithium-ion Cells and having its manufacturing facility at Surat, Gujarat with a battery production capacity of 400MWH+ per annum. Turnover achieved by the Company in FY 2020-21 was Rs. 670.02 Lacs and FY 2021-22 Rs 2275.98 Lacs (Provisional).

Source : Equity Bulls

Keywords

WaareeTechnologies Acquisition LithiumBatteryBusiness WAAREEESS