Mumbai, Jan 21 (PTI) Automotive component maker Kinetic Engineering on Tuesday said it will issue convertible warrants worth Rs 177 crore, with a conversion period of 18 months.

The company also said its promoters have committed to an initial investment of Rs 55 crore by March which includes 25 per cent of the warrant subscription amount for future investments, contingent upon SEBI and shareholder approvals.

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The investment is spearheaded by the company's founder and chairman, Arun Firodia, along with family-owned trusts Arun Firodia Trust and Jayashree Firodia Trust, it said.

Additionally, outside investors have subscribed to warrants totalling Rs 17.10 crore from investors including Transaction Square LLP and Sai Geeta Penumetsa, Kinetic Energy said.

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The investment plan outlines a phased commitment of Rs 60 crore by March 2025, followed by Rs 44 crore by March 2026, and Rs 73 crore by March 2027, it said.

The strategic initiative aims to propel Kinetic Engineering Ltd toward its ambitious revenue target of Rs 1,000 crore by 2029, a significant leap from its current revenue of Rs 150 crore, the company said, adding it also supports the promoters' objective to increase their stake in the company to 70 per cent by 2027 from 59 per cent at present.

The investment will be deployed to strengthen working capital, enhance manufacturing capabilities, and drive innovation in product development, particularly in high-growth areas such as electric vehicle (EV) components, Kinetic engineering said.

This capital infusion and the issuance of strategic warrants underscore the promoters' confidence in KEL's long-term strategy, positioning the company to capitalise on emerging opportunities in the evolving mobility landscape, the company said.

"This capital infusion from the promoters reinforces our growth blueprint, enabling us to take bold strides toward achieving our Rs 1,000 crore revenue milestone. We are committed to using this investment to fuel innovation, improve operational efficiencies, and meet the evolving demands of the automotive and EV industries," said Ajinkya Firodia, Vice Chairman, Kinetic Group, said.

He also said that KEL expects finalising significant business deals shortly.

"Additionally, we are heavily focused on the EV segment, with plans for our subsidiary, Kinetic Watts & Volts, nearing finalisation. These initiatives will drive an 8x to 10x revenue growth, and we are pleased to make this investment to meet the required capital expenditure, working capital, and growth initiatives," he added.

KEL's aggressive growth strategy is driven by an expanded export business, a diversified portfolio, a strong focus on EVs through its subsidiary, and cost-reduction initiatives, the company said.

KEL said it aims to scale its business significantly by enhancing its domestic and international presence while maintaining its leadership in the automotive components sector.

The company's strategic emphasis remains firmly on the EV sector, focusing on developing advanced drivetrain solutions, gear systems, and other products through its subsidiary, Kinetic Watts & Volts, it said.

Additionally, KEL is expanding its R&D capabilities to deepen its footprint in the EV segment while exploring collaborations with OEMs to accelerate growth, KEL emphasised.

"This capital infusion empowers us to accelerate our transformation journey, explore new business verticals, and unlock greater value for our stakeholders," added Firodia."

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