Auto Engineering Company Unveils Strategic Rs 177 Crore Investment Led by Promoters to Drive Transformation and Achieve Rs 1,000 Crore Revenue Target
The shares of the company saw a spurt in volume by more than 3 times on BSE.
On Thursday, shares of Kinetic Engineering Limited gained 6.91 per cent to Rs 205.90 per share from its previous closing of Rs 192.60 per share. The shares of the company saw a spurt in volume by more than 3 times on BSE.
Kinetic Engineering Ltd. (KEL) has announced a significant Rs 177 crore investment led by its promoters to fuel its growth ambitions. This investment will be made through the issuance of convertible warrants with an 18-month conversion period. Promoters will initially invest INR 55 crore, with the remaining amount to be invested in phases over the next two years. This move will increase the promoters' stake in the company from 59 per cent to 70 per cent by 2027.
The strategic investment aims to propel KEL towards a revenue target of Rs 1,000 crore by 2029, representing 8x to 10x growth from its current revenue. This capital infusion will be utilized to strengthen working capital, enhance manufacturing capabilities, and drive innovation in product development, particularly in the high-growth electric vehicle (EV) components segment. KEL's subsidiary, Kinetic Watts & Volts, is focused on developing advanced drivetrain solutions and gear systems for the EV market.
This investment underscores the promoters' confidence in KEL's long-term strategy and their commitment to its future. By increasing their stake and investing in the company's growth, the promoters are positioning KEL to capitalize on emerging opportunities in the evolving mobility landscape. The company's focus on sustainable growth, long-term value creation, and effective execution in a competitive market will be crucial for achieving its ambitious goals.
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Kinetic Engineering Limited (KEL), the flagship company of the Kinetic Group with a five-decade legacy in manufacturing, is led by Ajinkya Firodia, Managing Director. Mr. Firodia recently made headlines as an angel investor in the first season of "Indian Angels," the world's first OTT angel investing show, which premiered on JioCinema. KEL, a pioneer in the automotive industry with a state-of-the-art 70-acre manufacturing unit in Ahmednagar, boasts over 1,000 employees, 32 manufacturing sheds, and more than 400 machines. All KEL products adhere to the stringent IATF 16949 quality standards. The company recently celebrated its 52nd anniversary, marking its journey of manufacturing excellence. KEL's esteemed customer base includes renowned names like Renault, American Axle, TATA Motors, Mahindra & Mahindra, Ashok Leyland, Magna Powertrain, Sonalika Tractors, Carraro Products, and many others. While its corporate office is located in Chinchwad, Pune, KEL maintains a strong presence at its large manufacturing plant in Ahmednagar.
The company has a market cap of Rs 447.44 crore and reported amazing numbers in its Quarterly Results and annual results. The stock is up by 57 per cent from its 52-week low of Rs 131.05 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.