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    Endurance Tech buys 51% stake in Maxwell Energy to boost foray into EV products

    Endurance Tech buys 51% stake in Maxwell Energy to boost foray into EV products

    Endurance Tech buys 51% stake in Maxwell Energy to boost foray into EV products
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    By CNBC-TV18  IST (Published)

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    Endurance acquired the stake for Rs 135 crore. Maxwell is in the business of embedded electronics, particularly in battery management system (BMS) for vehicles, including electric vehicles.

    Auto component maker Endurance Technologies Ltd on July 1 said it has acquired a 51 percent stake in Maxwell Energy Systems Private Ltd for Rs 135 crore.

    "We hereby inform that the company has acquired 51% of the equity share capital of Maxwell on 1st July 2022, through a combination of primary issuance and secondary purchase," Endurance Technologies said in an exchange filing.

    Consequently, Maxwell will become a subsidiary of Endurance Technologies with effect from July 1, 2022.

    The balance 49 percent stake will be purchased in a phased manner in five tranches, spread over the next five financial years, the company said.

    The aggregate cost of acquisition is Rs 135 crore comprising Rs 71.5 crore towards a subscription to the primary issuance of 37,007 shares and Rs 63.5 crore towards the secondary purchase of 32,866 shares at Rs 19,321 per equity share of the face value of Re 1 each, it said.

    On May 18, 2022, Endurance informed the exchanges about the execution of a share subscription and purchase agreement with shareholders of Maxwell Energy Systems Private Limited for acquiring 100 percent of its equity share capital in a phased manner.

    Maxwell is in the business of embedded electronics, particularly in battery management system (BMS) for vehicles, including electric vehicles. The company also designs and develops BMS for stationary batteries/energy storage solutions. Maxwell's BMS leverages proprietary algorithms to improve battery life and performance.

    The company is headquartered Mumbai, India, and caters to OEM customers in India and Europe. Maxwell is a wholly-owned subsidiary of a US-based company, ION Energy Inc.

    ION is a startup floated in 2017 by an Indian entrepreneur, Akhil Prakash Panjwani. It is focused on designing and developing advanced electronics platforms targeted toward next-gen mobility and energy storage solutions.

    The acquisition will facilitate the group's foray into an EV-centric product line as an early participant to offer BMS to auto OEMs. It is expected that, as a preferred tier 1 auto component supplier, the company will effectively leverage its business relationships to further grow the acquired business with its OEM customers.

    Shares of Endurance Technologies ended at Rs 1,411.00, up by Rs 1.75, or 0.12 percent on the BSE.

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