Kinetic Engineering to raise ₹54 cr. via sale of non-core assets, promoters
Kinetic Engineering Ltd. said its board had approved raising more than ₹54 crore from various sources, including promoters and sale of non-core assets.
Accordingly, the board approved the issue of 22.85 lakh equity shares on a preferential basis to promoters and promoter group companies, totalling ₹26.27 crore, at a price of ₹115 per share, including a premium of ₹105 per share.
This is the third year in a row wherein promoters have increased their stake in the company, which will stand at 59.35%.
In addition, the board had approved optionally convertible cumulative preference shares (OCCPS) totalling to ₹2.18 crore to Jayashree Firodia Trust, a part of the promoter group.
In this manner, about ₹28 crore would be raised through equity, significantly increasing the net worth, the company said.
The board had also approved the sale of excess land parcels of the company for ₹25.50 crore.
Ajinkya Firodia, MD, Kinetic Engineering Ltd., said, “KEL has completed its restructuring of auto-components and turned around its operations over the past three years and achieved continuous growth in net profit during the last couple of years.”
“Now we strongly believe time has come to cash in on all the efforts, learnings and opportunities that lie ahead in our current business and future potential,” he said.
“We would like to utilise these funds for building a healthy balance sheet by further reducing debt of ₹18 crore, building a strong auto-component business by revamping our facilities, investing in new equipment, investing for new business and in working capital and capex in KEL to the tune of ₹13-15 crore, and to build a strong future in EV by capitalising on subsidiary company – Kinetic Watts & Volts Ltd. – with additional equity of ₹22 crore to ₹23 crore,” he added.