Kinetic Engineering's Bold Leap Towards the EV Future

Kinetic Engineering plans to raise Rs 177 crore through convertible warrants to boost its growth in the EV sector. Promoters, led by Arun Firodia, and external investors are involved in phased investments. The company targets a revenue of Rs 1,000 crore by 2029, focusing on innovation and expansion.

Kinetic Engineering has announced the issuance of convertible warrants worth Rs 177 crore, with an 18-month conversion period, aiming to bolster its growth, particularly in the EV segment. The plan includes phased investments, with promoters committing Rs 55 crore by March, contingent on regulatory approvals.

Led by founder Arun Firodia and family trusts, along with external stakeholders like Transaction Square LLP, the strategic initiative envisages phased capital infusions, culminating in Rs 60 crore by March 2025 and increasing to Rs 73 crore by 2027. This move aims to propel the company towards a revenue target of Rs 1,000 crore by 2029.

The focus of the investments is on expanding manufacturing capabilities, enhancing working capital, and fueling innovation, particularly in EV components. The strategy is aligned with increasing promoter stakes to 70% and leveraging growth opportunities. The company is also eyeing significant business agreements and expansion in EVs through its subsidiary, Kinetic Watts & Volts.

(With inputs from agencies.)