Kinetic Engineering Ltd. (KEL) announced that its promoter group has infused Rs 40 crore into the company through the conversion of warrants, subject to regulatory approvals.
Following the transaction, promoter shareholding in the company has increased to 65%, compared to 49% four years ago.
Fund Utilisation Plans
The company stated that the capital will be used to support expansion across its electric vehicle and auto component businesses.
A portion of the funds will also be allocated to expand distribution for the recently launched Kinetic DX scooter, which has seen market demand. In addition, the company plans to use the funds for capacity expansion and to support new business activities within its component segment.
Focus on EV and Component Business
Kinetic Engineering is increasing its involvement in electric mobility, including EV components and battery-related systems.
The company continues to supply components to domestic and global original equipment manufacturers (OEMs), while also working on programs linked to electric mobility platforms.
Business Background
Kinetic Engineering Ltd., part of the Kinetic Group, has been operating in the automotive component sector for over five decades. The company is currently expanding its operations in line with changes in the mobility sector, including the shift towards electric vehicles.
Ajinkya Firodia, Vice Chairman & Managing Director, Kinetic Engineering Ltd. said, “It is highly exciting time for us at Kinetic. The response to the scooter, Kinetic DX, launched by the subsidiary company is phenomenal. We are expanding nationwide and plan to appoint over 150 dealers this year. Meanwhile Kinetic Engineering’s component business is showing great potential and new orders. We will be using these funds for expansion of both projects as required and planned. This additional investment reflects the promoter group’s continued confidence in Kinetic Engineering and our long-term strategy. The automotive industry is undergoing a profound shift towards electric mobility, and we are building the capabilities needed to participate meaningfully in this transition. Strengthening the company’s capital base allows us to accelerate investments in technology, manufacturing, and innovation as we prepare for the next phase of growth.”
