Shares of Kinetic Engineering Limited (KEL) gained 3.98% to trade at ₹189.50 on the Bombay Stock Exchange (BSE) after the company announced a strategic investment plan worth ₹177 crore. This initiative, led by the promoters, aims to fuel its growth and transformation, targeting an ambitious revenue milestone of ₹1,000 crore by 2029, a significant leap from its current ₹150 crore.
Key Highlights of the Investment Plan:
- Convertible Warrants: Investment to be made through convertible warrants with an 18-month conversion period.
- Promoters’ Commitment: ₹55 crore to be infused by March 2025, with ₹60 crore by 2025, ₹44 crore by 2026, and ₹73 crore by 2027.
- Stake Increase: Promoters’ shareholding to rise from 59% to 70% by 2027, with 93.5 lakh new shares issued.
Growth Strategy:
Kinetic Engineering is focused on strengthening its position in the electric vehicle (EV) components segment. The company, through its subsidiary Kinetic Watts & Volts, is gearing up to launch advanced drivetrain solutions and gear systems for EVs.
Ajinkya Firodia, Vice Chairman of the Kinetic Group, emphasized the strategic importance of the investment. “This capital infusion enables us to strengthen our R&D, manufacturing, and working capital capabilities to align with our growth vision,” he stated.
The company’s Ahmednagar facility, spanning 70 acres, will play a central role in this expansion, supported by over 1,000 employees and 400 advanced machines. KEL’s clientele includes major automotive players such as Renault, Tata Motors, Mahindra & Mahindra, and Ashok Leyland.
