Kinetic Engineering Ltd has received in-principle approval from the Bombay Stock Exchange (BSE) for an investment proposal worth INR 177 crore. The approval follows near-unanimous support from shareholders, with 99.9967 percent voting in favour of the fund infusion, underlining confidence in the company’s growth strategy and electric mobility ambitions.
The investment will be raised through the issue of 1,03,56,725 convertible warrants, with the first tranche of INR 55 crore scheduled for infusion before 31 March 2025. The funds will be directed towards capital expenditure, tooling, and expansion activities across Kinetic Engineering and its wholly-owned electric mobility subsidiary, Kinetic Watts and Volts. The remaining amount will be invested over the next 18 months.
The company confirmed the development noting that the proposal has cleared all regulatory and shareholder hurdles, including approvals from SEBI. The new investment pool includes contributions from the promoter group and key investors such as Transaction Square LLP and Sai Geeta Penumetsa, reinforcing a broader base of trust in Kinetic's direction.
The electric vehicle division, Kinetic Watts and Volts, is expected to be the main beneficiary of the new capital. It has been established to capture opportunities in the fast-growing electric mobility segment, which is seeing rising demand due to favourable policy shifts and growing environmental concerns. The EV arm is likely to focus on building cost-efficient solutions, particularly in the two- and three-wheeler categories, which have shown strong adoption across urban and semi-urban markets.
Ajinkya Firodia, Vice Chairman, Kinetic Group, highlighted the investment as a milestone in the ongoing transformation of Kinetic Engineering, aimed at unlocking new opportunities, building capacity, and creating lasting value for all stakeholders. He also extended an open invitation to the investor community to participate in the company’s next phase of expansion.
In a move that signals strong promoter backing, the group aims to increase its shareholding from the current 59 percent to 70 percent by the financial year 2027. This step is intended to reinforce long-term involvement and provide stability as the company ramps up its operations, particularly in the evolving electric vehicle space.
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