Shares of Kinetic Engineering was locked in 5% upper circuit at Rs 35.20 on the Bombay Stock Exchange after it sold its entire stake of 10.3 per cent in Mahindra Two Wheelers for Rs 182 crore to private equity investment group Samena Capital.
Mahindra Two Wheelers is the two-wheeler making company making entry level motorcycles and scooter from bought out assets of Kinetic Motors since 2008. The loss making company is in the process of getting merged into utility and tractor making company Mahindra & Mahindra.
Kinetic Engineering, the component making company of the Pune-based Firodia family, will receive a consideration of about Rs 182.1 crore and after certain committed non convertible debentures repayments and cost of financing, the net proceeds would amount to about Rs 109.8 crore.
