Kinetic Engineering Limited in a recent regulatory filing informed, that it has made an additional investment in its subsidiary, Kinetic Watts and Volts Limited. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company subscribed to 30,00,000 equity shares of face value Rs 10 each at par, amounting to a total investment of Rs 3,00,00,000. The allotment was completed on February 23, 2026.

Shareholding Pattern After Allotment

Prior to the allotment, Kinetic Engineering held 5,73,20,000 shares in Kinetic Watts and Volts Limited, representing 79.79 percent of the paid-up share capital. After the subscription of additional shares, its holding increased to 6,03,20,000 shares, taking its shareholding to 80.60 percent.

The company stated that the transaction qualifies as a related party transaction, as the target entity is its subsidiary. It also confirmed that the investment has been made at arm’s length.

Details of the Subsidiary

Kinetic Watts and Volts Limited operates in the automobile sector. The company was incorporated on September 27, 2022, under the Companies Act, 2013, as a subsidiary of Kinetic Engineering Limited. As per the disclosure, the turnover of the subsidiary is reported as nil. The authorized share capital of Kinetic Watts and Volts Limited is Rs 75 crore, while its paid-up capital stands at Rs 74.83 crore.

Transaction Structure and Approvals

The investment has been made through cash consideration. The total acquisition cost is Rs 3 crore for 30,00,000 equity shares issued at par.

The company stated that no governmental or regulatory approvals were required for the transaction. It also mentioned that, apart from what has been disclosed, the promoter group and group companies have no additional interest in the transaction. The investment is intended to support the subsidiary’s operations in the automobile business