Pune, March 27th, 2025:
Kinetic Engineering Ltd. has secured approval from regulators and shareholders for an investment of ₹177 crores over the next 18 months. The initial tranche of this investment is expected to be completed by March 31, 2025. Notable investors in this funding initiative include Transaction Square LLP and Sai Geeta Penumetsa.
The former manufacturer of India’s iconic Kinetic Honda two-wheeler has received shareholder approval, and the Securities and Exchange Board of India (SEBI) has authorized its Board of Directors to raise and allocate these funds for capital expenditures, tooling, and growth strategies for Kinetic Engineering Ltd and its subsidiaries, Kinetic Watts and Volts.
During a previous press conference in Mumbai, Ajinkya Firodia, Vice Chairman of Kinetic Group, outlined Kinetic Watts and Volts’ strategic plan, emphasizing the company’s role in expanding within the rapidly evolving electric vehicle market.
To improve financial stability and accelerate growth, the company plans to inject ₹55 crores by March 31, 2025. These funds will be used for capital expenditures, tooling, and other growth initiatives, with a significant portion going to Kinetic Watts and Volts, which focuses on the burgeoning electric vehicle market.
While discussing Kinetic Group’s fundraising and business strategy, Ajinkya Firodia stated, “I am completely committed to the success and revival of Kinetic Engineering. This investment represents a pivotal moment in our growth and transformation journey. We are committed to seizing new opportunities, enhancing our market presence, and generating long-term value for all stakeholders. We encourage our investors to join us in this exciting phase and contribute to the vibrant and successful future of Kinetic Engineering.”
As part of their investment strategy, the promoters intend to increase their shareholding from 59% to 70% by FY-2027, demonstrating their long-term commitment to the company’s growth.
Kinetic has manufacturing facilities in Ahmednagar that house 1,000 employees, 32 production sheds, and over 400 machines. All of KEL’s products are IATF 16949 certified.
