Kinetic Engineering hits 5% upper circuit; here's why the stock rallied today

Kinetic Engineering share price: Shares of Kinetic Engineering were locked in the upper circuit limit of 5 per cent at Rs 124.20 on the BSE on July 12. The stock jumped after the company announced that its board has approved the raising of over Rs 54 crore from various available sources, including promoters and the sale of its non-core assets.

Accordingly, the board approved the issue of 22.85 lakh equity shares on a preferential basis, to promoters and promoter group companies totalling Rs 26.27 crore at a price of Rs 115 per share (including a premium of Rs 105 per share), the company said in its regulatory filing on July 11.

In addition, the board also approved the sale of excess land parcels of the company at a consideration of Rs 25.50 crore after following due process, including a valuation done by a Registered Valuer, the company's statement added.

About Kinetic Engineering

It is the flagship company of the Kinetic Group. The Pune-based company, which has been in the industry for over five decades, operates in the automotive industry. The company’s manufacturing unit in Ahmednagar is spread over 70 acres and has over 800 employees, 32 manufacturing sheds, and more than 400 machines.

Kinetic Engineering’s customer list includes Renault, American Axle, TATA Motors, Mahindra & Mahindra, Ashok Leyland, and Magna. Powertrain, Bombardier Recreational products, and many others, as per the company.