Kinetic Engineering Limited (KEL) has received a significant boost in its capital structure as the Bombay Stock Exchange (BSE) granted listing approval for 4,00,000 equity shares. This development marks a crucial step in the company's financial strategy and capital raising efforts.

Key Details of the Listing Approval

The listing approval allows Kinetic Engineering to list these newly issued shares on the BSE. However, it's important to note that trading approval is still pending and subject to the completion of additional regulatory requirements, including confirmation from depositories.

Regulatory Compliance

In line with regulatory requirements, Kinetic Engineering has promptly disclosed this development to the stock exchange. The company's notification adheres to Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015.

Implications for Investors

This listing approval represents a significant corporate action for Kinetic Engineering. The issuance of shares to non-promoters on a preferential basis, resulting from warrant conversion, could potentially impact the company's ownership structure and liquidity in the market.

Investors and market participants should note that while listing approval has been granted, actual trading of these new shares will commence only after the company receives trading approval, which is contingent on fulfilling additional regulatory prerequisites.

As the situation develops, stakeholders are advised to keep an eye on further announcements from Kinetic Engineering regarding the completion of regulatory requirements and the eventual trading approval for these newly listed shares.

About Kinetic Engineering Limited

Kinetic Engineering Limited is headquartered in Pune, Maharashtra. The company operates a manufacturing plant in Ahmednagar and is known for its presence in the engineering sector.

Kinetic Engineering Limited (KEL) has submitted its monitoring agency report for the quarter ended September 30, 2025, prepared by CARE Ratings Limited. The report indicates no deviation from the stated objectives of the company's preferential issue of warrants.

Key Highlights

• Total funds raised: Rs. 61.84 crore (out of planned Rs. 166.84 crore)
• Funds utilized during the quarter: Rs. 34.46 crore
• Unutilized funds: Rs. 29.63 crore (deployed in fixed deposits)

Fund Utilization Breakdown

Issue Details and Utilization

Kinetic Engineering initially planned to raise Rs. 177.10 crore through a preferential issue of warrants. However, due to undersubscription by non-promoter allottees, the total issue size was reduced to Rs. 166.84 crore. The company has received Rs. 61.84 crore till September 30, 2025, with the remaining amount expected within 18 months from the date of allotment of share warrants.

The report highlights that Rs. 34.46 crore has been utilized during the quarter. Significant allocations include Rs. 19.64 crore for redemption of preference shares, Rs. 4.82 crore for payment of overdue liabilities, and Rs. 20.00 crore for investment in the subsidiary company, Kinetic Watts and Volts Limited.

Unutilized Funds

The unutilized funds of Rs. 29.63 crore have been deployed in fixed deposits with Saraswat Co-op Bank, earning an annual return of 4.75%. The details are as follows:

Revised Allocation

The board of directors approved a revised cost allocation on May 13, 2025, following the undersubscription. The revised allocation adjusts the amounts for working capital requirements and general corporate purposes.

Monitoring Agency Comments

CARE Ratings Limited, acting as the monitoring agency, has reported no deviation from the stated objectives of the issue. The agency noted that the funds received from the issue proceeds were utilized towards equity investment in the subsidiary company via a rights issue, as per the objects of the issue.

Compliance and Disclosure

Kinetic Engineering has filed this report in compliance with Regulation 32(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has assured that all government and statutory approvals related to the objects have been obtained.

As the preferential issue proceeds continue to be utilized, investors and stakeholders will be keenly watching the company's progress in achieving its stated objectives and the impact on its financial performance.