In a regulatory filing made post trading hours on Thursday, MGL stated that it has signed a share subscription agreement (SSA) and a shareholding agreement (SHA) with International Battery Company, Inc. (IBC US). Accordingly, both parties will invest in International Battery Company India Private Limited (IBC) to form a joint venture company, which is currently a 100% subsidiary of IBC US.
Last month, MGL had announced the signing of an indicative and non-binding term sheet with International Battery Company, Inc, a Delaware Corporation, for a proposed investment by the company in IBC of an amount not exceeding Rs 385 crore, for a stake not less than 40%.
IBC US is based in California, USA. The company has put up a pilot facility in Seoul, South Korea for development and production of li-ion cell and has secured certifications such as UN 38.3, BIS, and AIS for their prismatic NMC cells.
To address the local market requirement, IBC US and MGL are setting up a giga factory at Bangalore. MGL intends to take at least 40% stake in IBC. The India facility will be a technology agonistic plant which will initially produce prismatic NMC Li-ion cells having wide application across mobility and battery storage sector.
Ashu Shinghal, managing director of MGL said: “MGL has established itself as a leading CGD company and a key player in India’s energy landscape. MGL has already committed investments in LNG retail, CBG and Electric Vehicle manufacturing.
Foray into battery cell manufacturing will strengthen its position in the evolving energy space which aligns with MGL’s objective of a cleaner future. IBC has a capable and experienced team who has worked with leading technology companies globally.
Through IBC, MGL and IBC US will set up a giga factory in India for Indigenous battery cell manufacturing. This will enable the consumers to source battery cells locally, which are currently being imported. thereby enhancing the competitiveness of the sector.”
Mahanagar Gas is in the business of city gas distribution (CGD), presently distribution of natural gas for domestic industrial, commercial customers and CNG vehicles.
The company reported 16.5% fall in standalone net profit to Rs 282.8 crore despite a 9% rise in net revenue from operations to Rs 1,711.62 crore in Q2 FY25 over Q2 FY24.
The scrip rose 0.16% to currently trade at Rs 1439.45 on the BSE.