| Merchant banking sources said a few investors, including an Italian and a Singapore-based institution, had shown interest in picking up a stake in the company. |
| They also said that no single investor would pick up 20 per cent stake and, therefore, there would be no mandatory open offer. A decision on this might be announced in a fortnight, they added. |
| Kinetic joint managing director Sulajja Firodia Motowani declined to comment on offering a stake to foreign investors. She told Business Standard, "The company has appointed HSBC as a merchant banker to help it raise funds. Kinetic Motor plans to raise Rs 60-100 crore capital to fund its expansion as well as working capital." |
| Motowani said the company was launching seven models to cater to overseas as well as domestic markets. In addition, the company was implementing an initiative to building brand identity and new logo. |
| She added that the company has passed a resolution to enhance its paid-up equity capital from Rs 15 crore to Rs 25 crore. The Kinetic Motor stock has a face value of Rs 10. |
| Merchant banking sources said the proposed move to enhance equity capital was linked to offering a stake to investors. The foreign investors, they said, would acquire 50 lakh new shares which would represent a 20 per cent stake of the enhanced capital. |
| Motwani said the structure of the fund raising programme was not yet finalised and it was expected to be done in two weeks. |
| At today's closing rate of Rs 58.10 on the Bombay Stock Exchange, 50 lakh shares are valued at Rs 29.50 crore. "The company is expecting a handsome premium over the ruling market rate," a merchant banking source said. The company has decided to increase the authorised share capital from Rs 20 crore to Rs 35 crore, subject to shareholders' approval. |
| The board has also decided to extend the current accounting year by six months to September 30, 2005. |
Top Section
Explore Business Standard