Knowledge Marine Allots Shares Worth Rs 270 Crores to Ashish Kacholia and Others in Preferential Issue

Knowledge Marine & Engineering Works Limited (KMEW) has announced a preferential allotment of equity shares and warrants, including an investment by renowned investor Ashish Kacholia. This move marks a capital infusion for the ship building and marine services company.

Key Highlights of the Allotment

Total Equity Shares Allotted: 14,21,054
Issue Price: Rs. 1,900.00 per share
Total Capital Raised: Rs. 270.00 crores
Premium: Rs. 1,890.00 per share

Breakdown of Allotment

Allottee	Category	Shares Allotted
Infinity Direct Holdings	Non-Promoter	4,64,210
Infinity Direct Capital	Non-Promoter	5,46,316
Infinity Partners II - Direct	Non-Promoter	2,52,632
Ashish Kacholia	Non-Promoter	52,632
Vimana Capital Management LLP	Non-Promoter	52,632
Suryashakti Management Services Private Limited	Non-Promoter	52,632

Additional Warrant Allotment

KMEW has also allotted 77,946 convertible warrants to promoter category investors at Rs. 1,900.00 each, potentially bringing in an additional Rs. 14.81 crores. These warrants require a 25% upfront payment, with the remaining 75% payable upon conversion to equity shares.

Impact on Share Capital

Following this allotment, KMEW's paid-up equity share capital has increased from Rs. 10.80 crores to Rs. 12.22 crores, representing an expansion of the company's equity base.

Investor Participation

The participation of Ashish Kacholia, a well-known investor in the Indian stock market, along with other institutional investors, may increase market interest in the company.

Regulatory Compliance

The company has stated that the allotted shares will rank equally with existing shares. The allotment was approved by the Board of Directors and received prior approvals from shareholders and stock exchanges. KMEW is expected to apply for listing and trading approvals for these newly allotted shares on both BSE and NSE, where the company is currently listed.

This preferential allotment provides Knowledge Marine & Engineering Works Limited with additional capital for its operations and growth initiatives in the marine and engineering sectors.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.79%	+3.18%	+20.70%	+79.57%	+35.80%	+29.88%

Knowledge Marine & Engineering Works Limited (KMEW) has taken a significant step towards maritime sustainability by securing a ₹385.76 crore contract from V.O. Chidambaranar Port Authority (VOCPA) for an electric tug service. This 15-year agreement marks a pivotal moment in India's Green Tug Transition Program (GTTP) and reinforces KMEW's position in the evolving marine engineering sector.

Contract Details

Aspect	Details
Contract Value	₹385.76 crore (including taxes)
Duration	15 years
Scope	Hiring, manning, operations, maintenance, and technical management of a 60-ton bollard pull capacity electric tug
Compliance	GTTP (Green Tug Transition Program)

Significance of the Contract

This contract is noteworthy for several reasons:

Environmental Impact: The electric tug aligns with India's Maritime Vision 2030, aiming to reduce carbon emissions in port operations by 30%.
Technological Advancement: KMEW will design and build the 60-ton Green Tug in-house, showcasing their capabilities in advanced marine solutions.
Strategic Expansion: This deal strengthens KMEW's presence in southern India and diversifies their specialized port services portfolio.
Long-term Revenue Visibility: The 15-year contract duration provides KMEW with steady, long-term revenue prospects.

Implications for KMEW and the Industry

Market Position: This contract positions KMEW among the select Indian companies deploying GTTP-compliant electric tugs.
Innovation Leadership: By developing the tug in-house, KMEW demonstrates its commitment to innovation and sustainability in marine engineering.
Future Opportunities: As more Indian ports transition to green technologies, KMEW is well-positioned to secure similar contracts.

Industry Context

The Green Tug Transition Program is part of India's broader initiative to decarbonize its maritime sector. With an investment of ₹10,000 crore, the program aims to replace diesel-powered harbor tugs with zero-emission alternatives between October 2024 and December 2027.

Management's Perspective

Sujay Kewalramani, CEO of KMEW, expressed pride in securing this landmark contract, stating, "This 15-year contract, one of the longest and most strategically significant in our portfolio, reflects the trust placed in us by V.O. Chidambaranar Port Authority and reaffirms our commitment to delivering innovative, reliable, and environmentally responsible marine solutions."

Conclusion

KMEW's latest contract is not just a business win but a step towards a more sustainable maritime future. As India pushes for greener port operations, companies like KMEW that can deliver innovative, environmentally-friendly solutions are likely to see increased opportunities and growth in the coming years.