Kinetic Engineering has secured a Rs 40 crore infusion from promoters to enhance its electric vehicle and component business.

Kinetic Engineering Limited, which is an automotive component manufacturer, has announced that its promoter group has allocated an additional investment of Rs 40 crore into the company via warrants conversions, according to the regulatory approvals. With this, the promoter sharing has also increased from 49% to 65% in the span of four years.

The company stated that the proposed capital will be further invested to strengthen the balance sheet and will be enhancing the development of electric automotive components. These funds will also help in the growth of the distribution chain for the recently launched Kinetic DX electric scooter.

According to Kinetic Engineering, they are ramping up the activities in electric vehicle components, battery systems, and engineering solutions for various automotive companies. All the amount will be allocated towards the support of these incentives.The Vice Chairman and Managing Director of Kinetic Engineering Limited, Ajinkya Firodia, expressed his views on this and said, This is a revolutionary time for Kinetic as the initial response to the legendary DX scooter is exceptional. We are expanding our operations across the country and aimed to appoint more than 150 dealers this year.

On the other hand, Kinetic Engineering’s component business is showing constant growth and new orders, and for that we will be using these funds for ramping up both the projects as planned. The automotive industry is experiencing a rapid transition towards electric mobility, and we are focussing towards establishing capabilities which are needed to participate in the transition.”