Kinetic Engineering Limited announced that its electric vehicle subsidiary, Kinetic Watts & Volts Ltd. (KWV), has received approval under the Government of Maharashtra's Electric Vehicle Policy. The approval entitles the company to an incentive benefit of approximately ₹42 crore, which will be realized in phases over a 10-year period.

Policy Approval and Investment Details

The Maharashtra EV Policy provides comprehensive incentives aimed at establishing the state as a leading EV manufacturing hub. The policy integrates capital-linked support, buyer incentives, tax and fee exemptions, and provisions for component manufacturing to strengthen adoption and domestic capabilities across the EV value chain.

Kinetic DX EV and Manufacturing Focus

Kinetic Watts & Volts has recently entered the EV two-wheeler market with the Kinetic DX model, marking the return of the iconic Kinetic DX that redefined mobility nearly four decades ago. The company has designed the scooter from the ground up and tooled 99% of its components, with vehicles produced in Ahilyanagar, Maharashtra.

The Kinetic DX EV features several first-in-segment patented features including Easy Charge™, Easy FLIP™, and Easy Key™. The vehicle comes with a strong metal body and offers 37 litres of under-seat storage, which is class-leading in its segment.

Strategic Investment and Expansion Plans

According to Mr. Ajinkya Firodia, Vice Chairman & Managing Director of Kinetic Watts & Volts Ltd., the incentive supports the company's strategy of robotics-led manufacturing and in-house battery assembly. The investments will be deployed principally in KWV's manufacturing campuses in Maharashtra to:

• Expand production of the Kinetic DX EV range
• Enhance battery assembly (Range-X) operations
• Develop robotics-enabled chassis and sub-assembly lines
• Accelerate localization efforts
• Reduce supply-chain dependencies

Market Operations and Future Outlook

KWV has commenced sales and service operations in Pune, Mumbai, Vadodara, and Surat, with plans for national expansion. The company operates from a state-of-the-art manufacturing facility spanning 87,000 sq. ft., combining scalable and eco-friendly production with cutting-edge automation and quality systems.

Company Background

Established in September 2022, Kinetic Watts & Volts Ltd. is the dedicated electric vehicle manufacturing subsidiary of Kinetic Engineering Ltd. The parent company, Kinetic Engineering Limited, has been at the forefront of India's automotive manufacturing sector for over five decades, supplying to leading OEMs including Tata Motors, Mahindra & Mahindra, Ashok Leyland, Renault, American Axle, Magna Powertrain, and Sonalika Tractors.

Kinetic Engineering Limited has filed its monitoring agency report for the quarter ended December 31, 2025, with BSE Limited, providing comprehensive details about the utilization of proceeds from its preferential issue. The report, prepared by CARE Ratings Limited as the monitoring agency, covers the company's Rs.166.84 crore preferential issue under SEBI regulations.

Issue Details and Structure

The company's preferential issue involved offering 1,03,56,725 fully convertible warrants to promoter and non-promoter groups at Rs.171 per warrant. However, the issue experienced undersubscription, with only 97,56,725 warrants receiving subscription, reducing the total issue size from the originally planned Rs.177.10 crore to Rs.166.84 crore.

Fund Utilization Progress

The monitoring agency report reveals that Rs.55.28 crore has been utilized by the end of Q3FY26, with Rs.10.82 crore utilized during the quarter. The company has received Rs.61.84 crore in total till December 31, 2025, through multiple tranches starting from March 2025.

Key Utilization Areas

The largest component of fund utilization has been the investment in subsidiary company Kinetic Watts and Volts Limited, where Rs.29.00 crore has been deployed through rights issue. The preference share redemption object has been fully completed with Rs.19.64 crore utilized. Payment of overdue liabilities shows substantial progress with Rs.4.82 crore utilized out of the allocated Rs.5.36 crore.

Working capital requirements saw Rs.1.82 crore utilization during the quarter, specifically for vendor payments. However, no funds were utilized for capex including solar projects or general corporate purposes during Q3FY26.

Deployment of Unutilized Proceeds

The company has maintained Rs.6.56 crore of unutilized proceeds in fixed deposits with Saraswat Co-op Bank, a scheduled bank under RBI regulations. These deposits are structured across three FDRs with varying maturity dates in January 2026.

Compliance and Monitoring Status

CARE Ratings Limited confirmed no deviations from the disclosed objects of the preferential issue. The monitoring agency noted that utilization of gross proceeds remains in line with the stated objects. The undersubscription impact was addressed through board approval for revised cost allocation on May 13, 2025.

The report indicates no major deviations from earlier monitoring reports and confirms that the means of finance changed only due to the undersubscription issue. All fund receipts and utilizations have been completed within the prescribed timelines, with some tranches completed ahead of schedule.