V-Guard Industries' stock ended 2% higher after the company's board approved the proposal to invest in Gegadyne Energy Labs Private Limited.
In a regulatory filing, the company said its purpose to acquire the company it to participate, nurture and have access to alternate battery technology wtih distinct advantages.
This acquisition will also bring in the potential to leverage the alternate battery technology for various primary applications like DUPS/Energy Storage, etc. going forward and potential 'secondary applications' in other products of V-Guard's existing portfolio.
The cost of acquisition of 18.77% shareholding Gegadyne is being done for Rs33.4cr. Investment is being made in equity and convertible preference shares of GEL, the company said.