Kinetic Engineering (KEL) has received its board’s approval to merge Kinetic Motor (KMCL) with itself in the swap ratio of 31 shares of KMCL for every four of KEL. The merged entity will now hold Kinetic Motor’s 17% stake in Mahindra Two Wheelers.
KEL’s stake in Mahindra Two Wheelers was indirectly, through Kinetic Motor, which had no significant operations. KMCL was predominantly becoming an investment arm.
The board has also approved the appointment of Sulajja Firodia Motwani, a director of the company, as vice chairperson of the merged entity.
Kinetic Engineering lowered its total debt to Rs 23 crore from Rs 105 crore a year ago through a sale of non-core assets such as land and from profits earned through stake sale in KMCL to Mahindra group.
KEL 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.
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