Kinetic Engineering was locked at 5% upper circuit at Rs 38.75 at 12:34 IST on BSE, with the stock extending recent rally triggered by the firm selling its entire stake in Mahindra Two Wheelers to Samena Capital.
Meanwhile, the S&P BSE Sensex was up 69.12 points or 0.33% at 21,056.11.
On BSE, so far 274 shares were traded in the counter as against average daily volume of 2,626 shares in the past one quarter.
The stock opened with an upward gap, surging by the maximum 5% daily circuit and remained locked at the 5% level at Rs 38.75 so far in the day. The stock had hit a 52-week high of Rs 103 on 26 February 2013. The stock had hit a 52-week low of Rs 33.50 on 24 February 2014.
The stock had underperformed the market over the past one month till 26 February 2014, sliding 7.16% compared with the Sensex's 0.69% fall. The scrip had also underperformed the market in past one quarter, declining 52.63% as against Sensex's 2.75% rise.
The small-cap company has equity capital of Rs 13.57 crore. Face value per share is Rs 10.
Share of Kinetic Engineering (KEL) have rallied 15.49% in three trading sessions from a recent low of Rs 33.55 on 24 February 2014 after the company during trading hours on Tuesday, 25 February 2014 said it has sold its entire shareholding in Mahindra Two Wheelers (MTWL) to Samena Capital, a Private Equity Investment Group focused on Asia and Middle east. KEL said that the stake-sale in MTWL will fetch approximately Rs 182.10 crore to the company, and after certain committed payments towards NCD repayments and cost of financing etc, KEL expects to receive net proceeds of around Rs 109.80 crore. KEL will utilize the net proceeds to meet various obligations of its business including working capital and substantially towards FCCB/debt repayment obligations to strengthen its balance sheet, the company said in a statement.
Kinetic group had originally acquired stake in MTWL over 5 years ago, in November 2008, when its group company, Kinetic Motor Company (KMCL), sold its two wheeler business assets to MTWL, for cash as well as a 20% strategic equity stake. Subsequently, KMCL was merged with KEL in year 2012, and thus, the stake had been transferred to KEL.
KEL has recently entered into two technical alliances, with Magna Steyr and with TGB of Taiwan and intends to build its business with a focus on Transmission Systems through these tie ups.
Kinetic Engineering reported a net loss of Rs 7.43 crore in Q3 December 2013, higher than net loss of Rs 6.83 crore in Q3 December 2012. Total income from operations declined 11.78% to Rs 16.39 crore in Q3 December 2013 over Q3 December 2012. The result was announced on Thursday, 27 February 2014.
Kinetic Engineering manufactures a variety of automobile components.
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