Tech Souls, Connected.

+1 202 555 0180

Have a question, comment, or concern? Our dedicated team of experts is ready to hear and assist you. Reach us through our social media, phone, or live chat.

Kinetic Engineering Restructures MD Loan into equity

On Tuesday, the board of Kinetic Engineering approved converting the personal loan given to the company by managing director Ajinkya Firodia into equity. The base price for conversion has been set at Rs 92.5 per share.

Firodia had given an unsecured interest-free personal loan to the tune of Rs 6 crore to Kinetic Engineering in 2016 for its working capital and capex requirements. Since that time, Kinetic has been steadily improving its performance, and it is now posting a net profit for the past four quarters.

The company received regulatory approval to convert the loan into equity last year and allotted the first tranche of 293,569 shares on conversion of the loan into equity. The allotment was done at Rs 35 per share in February 2021. Further, the allotment of 293,569 shares for converting the balance of the loan into equity would be made at Rs 92.50 per share.

Kinetic has successfully turned around its operations and established itself as a credible auto component manufacturer, according to Firodia. Kinetic is supplying transmission components and assemblies to the companies such as American Axle, Renault Nissan, Magna Powertrain, Mahindra, Ashok Leyland and Carraro. “The company has recently forayed into products for electric vehicles by launching rigid axles for electric 3Ws and also for gearbox for electric 2W. It is also in discussion with several other customers for axles for larger vehicles,” Firodia said.

Share this article
Shareable URL
Prev Post

May 2022 – Maruti NEXA Discounts on Ignis, Baleno, Ciaz, S-Cross, XL6

Next Post

ICICI Lombard distributes heatwave advisory through its IL TakeCare App

Read next
Whatsapp Join