Kinetic Motors To Raise Rs 125 Cr To Expand Operations

In order to expand its operations, Kinetic Motors, the fourth-biggest Kinetic Motorsmotorcycle and scooter maker, has decided to raise Rs 100-125 crore in the next three months.
The company said that the fund would be utilized for expanding capacity as well as for introducing new products.

The sources said that Kinetic Motors is in talks with the Mahindra and Mahindra (M&M) for a stake sale.

It is also learnt that both the companies are in the final stage of due diligence and M&M is likely to buy majority stake in the company.

Kinetic Motors is valued at around Rs 150 crore and a 50% equity stake is expected to cost around Rs75 crore.

Shares of Kinetic Motors, on Wednesday (May14) gained 4.88%, to end at Rs 27.95 on the Bombay Stock Exchange (BSE), whereas
M&M shares climbed 0.64%, to close the day at Rs 666.7.