Kinetic Engineering has received in-principle approval from the Bombay Stock Exchange (BSE). The approval is for an investment proposal worth ₹177 crore. Shareholders overwhelmingly supported the proposal. 99.9967% voted in favor of the fund infusion. This indicates strong confidence in the company’s growth strategy.
The investment will be raised through convertible warrants. A total of 1,03,56,725 warrants will be issued. The first tranche of ₹55 crore is expected soon. It is scheduled for infusion before March 31, 2025.
The funds will be allocated to various areas. Capital expenditure is one. Tooling and expansion activities will also be funded. These activities will be across Kinetic Engineering and its EV subsidiaries, including Kinetic Watts and Volts. The remaining amount will be invested over the next 18 months.
The company confirmed that the proposal has cleared all necessary hurdles. These include regulatory and shareholder approvals. SEBI has also given its approval.
The new investment pool includes contributions from various sources. The promoter group is contributing. Key investors such as Transaction Square LLP and Sai Geeta Penumetsa are also participating. This broad base of support indicates trust in Kinetic’s direction.
The electric vehicle division, Kinetic Watts and Volts, is set to be the main beneficiary. The new capital will primarily support this division. Kinetic Watts and Volts aims to capitalise on the growing EV market. This segment is expanding due to favorable government policies. Increasing environmental concerns are also driving demand.
The senior management of Kinetic Group has highlighted this event as a milestone for Kinetic Engineering. It signifies the ongoing transformation of the company. The goal is to unlock new opportunities, build capacity, and create lasting value for all stakeholders.
Signaling strong promoter backing, the group plans to increase its stake. They aim to raise their shareholding from 59% to 70%. This is targeted for the financial year 2027. This step is intended to reinforce long-term involvement. It will also provide stability as the company ramps up operations. This is particularly relevant in the evolving electric vehicle space.
Kinetic Engineering has secured approval for a significant investment. This funding will support their growth and EV ambitions. Strong backing from shareholders and promoters indicates confidence in the company’s future.
As of 3.14 PM, Kinetic Engineering share price was down 3.89% and was trading at ₹168.00
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Mar 27, 2025, 3:26 PM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
