Pune-based Kinetic Engineering Ltd (KEL) has infused ₹3 crore in its subsidiary Kinetic Watts and Volts Ltd to strengthen its presence in the automobile segment.
The investment has been made through a cash subscription of 30 lakh equity shares at a face value of ₹10 each, aggregating to ₹3 crore, the company said in a regulatory filing. Following the transaction, KEL’s stake in Kinetic Watts and Volts will increase to 80.60% from 79.79%.
As Kinetic Watts is a subsidiary of KEL, the transaction qualifies as a related party transaction. However, the company clarified that the investment has been carried out at arm’s length.
Kinetic Watts and Volts was incorporated in September 2022 as a subsidiary to undertake business activities in the automobile space. The company reported nil turnover, indicating that it is still in the early stages of operations.
The latest capital infusion is expected to support the subsidiary’s business plans and operational requirements as it seeks to scale up activities in the evolving automotive landscape.
Kinetic Engineering, part of the Kinetic Group, has been focusing on strengthening its portfolio amid changing industry dynamics, including the transition towards new mobility solutions.
The increased stake underscores the parent’s commitment to building capabilities through its subsidiary structure while maintaining financial discipline and compliance with regulatory norms.