Kinetic Engineering will issue convertible warrants worth Rs 177 crore, with a conversion period of 18 months. The promoters have committed to an initial investment of Rs 55 crore by March 2025, which includes 25% of the warrant subscription amount for future investments, contingent upon SEBI and shareholder approvals. Additionally, outside investors have subscribed to warrants totalling Rs 17.10 crore, with notable contributors including Transaction Square LLP and Sai Geeta Penumetsa.
The investment plan outlines a phased commitment: Rs 60 crore by March 2025, followed by Rs 44 crore by March 2026, and Rs 73 crore by March 2027. This strategic initiative aims to propel Kinetic
Engineering (KEL) toward its ambitious revenue target of Rs 1,000 crore by 2029, a significant leap from its current revenue of Rs 150 crore. It also supports the promoters' objective to increase their stake in the company from 59% to 70% by 2027.
Since 2017, the promoters have steadily raised their stake, growing from 49% to 70%, reflecting a 21% overall increase. As part of this initiative, approximately Rs 93.5 lakh new shares will be issued to the
promoters, bringing their total holdings to 2.26 crore shares and the company's total outstanding shares to 3.26 crore by July 2027. The investment is spearheaded by the company's founder and chairman, Arun Firodia, along with family-owned trusts—Arun Firodia Trust and Jayashree Firodia Trust.
Commenting on the development, Ajinkya Firodia, Vice Chairman, Kinetic Group, said: "Kinetic Engineering Limited has over 50 years of experience in manufacturing. It has successfully transformed into an auto components business and enjoys strong relationships with the world's
largest OEMs. Leveraging these long-standing partnerships, we expect to finalise significant business deals shortly. Additionally, we are heavily focused on the EV segment, with plans for our subsidiary, Kinetic Watts & Volts, nearing finalisation. These initiatives will drive an 8x to 10x revenue growth, and we are pleased to make this investment to meet the required capital expenditure, working capital, and growth initiatives. This infusion of capital from the promoters reinforces our growth blueprint,
enabling us to take bold strides toward achieving our INR 1,000 crore revenue milestone. We are committed to using this investment to fuel innovation, improve operational efficiencies, and meet the
evolving demands of the automotive and EV industries.”