Shares of Kinetic Engineering surged nearly 5% to hit the upper circuit at ₹177.30 in Friday’s early trade after the company approved a significant preferential allotment of convertible warrants. The announcement was made following a board meeting held on March 27, 2025.
According to the official release, the board approved the allotment of 93,56,725 convertible warrants at an issue price of ₹171 per warrant, aggregating to approximately ₹159.99 crore. These warrants are convertible into one equity share each at any time within 18 months from the date of allotment. Notably, 25% of the amount is to be paid upfront, and the remaining amount will be paid upon conversion.
The three investors in this preferential issue include:
- Jayashree Firodia Trust
- Arun Firodia Trust
- Arun Hastimal Firodia
The company also stated that it would redeem preference shares using the proceeds from this allotment, with a total redemption value of around ₹19.63 crore, covering multiple types of preference shares.
As of 9:30 AM on March 28, 2025, Kinetic Engineering shares were locked in at ₹177.30, up ₹8.40 or 4.97% from the previous close of ₹168.90. The stock’s day range is ₹172.00 – ₹177.30, and its market cap stands at ₹3.93 billion.
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