Moneycontrol Bureau
Shares of Kinetic Engineering jumped 5 percent on Tuesday as it exited from Mahindra Two Wheelers. The auto company has sold its entire shareholding in Mahindra Two Wheelers Limited (MTWL) to Samena Capital for Rs 182 crore. Samena Capital is private equity investment group focused on Asia and Middle east.
After repayment of non-convertible debentures (NCDs) and cost of financing, the Pune-based company will get Rs 109 crore. “KEL will utilise the net proceeds to meet various obligations of its business including working capital and substantially towards FCCB/debt repayment obligations to strengthen its balance sheet,” it said in a statement.
Earlier in 2008, Kinetic group had originally acquired MTWL when Group firm Kinetic Motor Company sold its two-wheeler business assets to M&M in a cash and stock deal.
Subsequently, KMCL was merged with KEL in year 2012, and thus, the stake had beentransferred to KEL.
Kinetic will now focus on building its automotive systems business through various group companies and will invest in new electric three-wheelers to be launched later in the year.
At 12:07 hrs, the stock was quoting at Rs 35.20, up Rs 1.65, or 4.92 percent on the BSE.
Posted by Nasrin Sultana
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