V-Guard Industries 01-Guard), India's leading FMEG company, today announced that its Board has approved the acquisition of a minority stake (18.77%) in Gegadyne Energy Labs Private Limited (GEL) for a cash consideration of Rs. 33.4 crores.
GEL is a Mumbai based alternate battery technology start-up developing innovative energy storage (battery) solutions, which could deliver better battery performance on key parameters like total cost of ownership (TCO), Life Cycle, Recharge time, Safety profile and Maintenance costs, compared to prevalent battery technologies. In addition, all key raw materials can be sourced locally, thereby providing distinctive advantage against some of the upcoming battery technologies based on rare metals with significant import dependence.
V-Guard envisages start-up collaboration as one of the routes to participate in emerging technologies and building product capabilities for fueling future growth. GEL investment is a stepping-stone in this direction and signifies V-Guard's willingness to move into cutting edge technology space and its growing focus on creating disruptions in established businesses. V-Guard foresees potential in GEL's alternative battery technology for various primary applications like DUPS / Energy storage in addition to secondary applications in other products of its existing portfolio.
Speaking on the occasion, Mr. Mithun Chittilappilly, Managing Director, V-Guard Industries Limited, said, "The proposed acquisition marks V-Guard's foray into deep tech start-up space and is in-line with V-Guard's philosophy of delivering thoughtful products and experiences to its consumers. We believe this collaboration will help GEL to realize its potential faster while also enabling V-Guard to further strengthen and expand its product offerings."
Deloitte Touche Tohmatsu India was the financial advisor and Cyril Amarchand Mangaldas was the legal advisor to the transaction for V-Guard.
Shares of V-GUARD INDUSTRIES LTD. was last trading in BSE at Rs.220.15 as compared to the previous close of Rs. 215.75. The total number of shares traded during the day was 70876 in over 1991 trades.
The stock hit an intraday high of Rs. 221 and intraday low of 214.4. The net turnover during the day was Rs. 15480558.