Kinetic Engineering, a Pune-based automobile manufacturer, has received approval from its board of directors to raise up to Rs 177 crore primarily from its promoters. The funds will be raised through the issuance of warrants, which can be converted into shares within 18 months at a rate of Rs 171 per warrant.
Of the total 1.04 crore warrants being issued, 41.7 lakh shares will go to the Jayashree Firodia Trust, 38.2 lakh to the Arun Firodia Trust, and 13.6 lakh to Arun Hastimal Firodia. Private entities such as Transaction Square LLP and Sai Geeta Penumetsa will also subscribe to the warrants.
Once the warrants are converted into shares, the promoters’ stakes in the company will increase significantly. For instance, the Jayashree Firodia Trust’s stake will grow from 4.9% (11.1 lakh shares) to 16.2% (52.8 lakh shares). With this capital infusion, the promoters plan to raise their ownership stake in the company from 59% to 70% by 2027.
Ajinkya Firodia, Vice Chairman of Kinetic Group, confirmed the development and shared that the company currently has an order book exceeding Rs 100 crore, with strong volumes from clients like Mahindra & Mahindra, Renault, TATA Motors, and Ashok Leyland.
A significant portion of the raised funds will be directed towards Kinetic Watts and Volts, the company’s electric vehicle subsidiary, which will receive Rs 100 crore for expansion. The remainder will be invested back into Kinetic Engineering Ltd, with plans to develop a battery manufacturing facility and participate in solar energy projects.
The investment strategy includes phased funding: Rs 60 crore by March 2025, Rs 44 crore by March 2026, and Rs 73 crore by March 2027. Kinetic aims to achieve a revenue target of Rs 1,000 crore by 2029 and expects to close the current fiscal year with Rs 160 crore in turnover.
Looking ahead, Firodia revealed that the current fundraising is primarily supported by high-net-worth individuals and close associates. However, the company is open to collaborating with international clean energy funds to expand its electric vehicle footprint.
Kinetic is also in talks with a European company to develop gearbox designs for Indian original equipment manufacturers (OEMs), with plans to launch solar panel gearboxes soon. Despite facing challenges in the current fiscal year, Firodia expressed confidence in the company’s long-term strategy, highlighting that the funds raised will support growth initiatives in electric vehicle components, fuel innovation, and operational improvements.
Kinetic Engineering Ltd is a prominent Indian automotive company known for its innovative contributions to the country’s two-wheeler and automobile industry. Founded in 1970 by the Firodia family, the company initially gained recognition for its successful line of mopeds and scooters, which became popular in the Indian market.
Over the years, Kinetic Engineering diversified its portfolio to include the design and manufacture of a wide range of automotive components, including engines, transmission systems, and other key mechanical parts for two-wheelers and commercial vehicles. Today, it continues to play a significant role in the Indian automotive sector, with a focus on engineering excellence, technological advancement, and sustainability.
