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Kinetic Motor gets nod to merge with Kinetic Engineering

09 Dec 2011 Evaluate

Kinetic Motor Company (KMCL) has received its board’s approval to merge with Kinetic Engineering (KEL). Moreover, an exchange ratio of 7.75 : 1 was approved for the equity shares of KMCL and KEL. Kinetic Engineering has a direct holding of 36.92% in Kinetic Motors. Kinetic Motor Company holds 20% equity stake in Mahindra group two-wheeler maker Mahindra Two Wheelers. It may be recalled that the Mahindra group had acquired the business assets of Kinetic Motor Company in 2008.

Kinetic Engineering manufactures a variety of automobile components. The company manufactures transmission components, engine components, as well as gearbox and assemblies for auto and non-auto products. Kinetic also manufactures various body components, has a press shop, paint shop, and assembles complete vehicles for some of its customers.

Kinetic Motor Company produces a complete two-wheeler portfolio, which ranges from mopeds, scooters and bikes. Manufacturing plants of the company are at Pithampur (for scooters), Ahmednagar (for scooterettes and mopeds) and Koregaon (for bikes).

Peers
Company Name CMP
Bajaj Auto 10130.95
Hero MotoCorp 5066.80
TVS Motor 3496.75
Eicher Motors 7329.55
Ather Energy 934.40
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