Kinetic Engineering to expand into EV business; Stock soars ~4%

16 Aug 2022 , 09:19 AM

Kinetic Engineering Limited (KEL) has announced the formation of a subsidiary company which will focus on the growing EV Market. The new entity will be a subsidiary of Kinetic Engineering in which the company will own more than 51% stake. The company will have an authorized capital of up to Rs25 crore.

The decision was taken in the board meeting of the company where the board members laid a clear focus on the growing EV sector. KEL is developing several products such as axles for electric three wheelers, gear boxes for electric two wheelers as well as three wheelers, frames for electric two wheelers, chassis for electric three wheelers. 

“With the tremendous growth of electric 2W and 3Ws in the society expected over the next few years, the company eyes more opportunities in the EV sector. With strong technical knowledge and vast manufacturing experience, Kinetic Engineering now will be able to house the entire EV portfolio”, the company said.

Currently, the company is developing new products for e-mobility. It has recently finalized orders for the development of chassis and other parts for electric moped manufacturers and has secured an order for a gearbox for a leading 3-wheeler manufacturer. Last year the company celebrated its 50th year of anniversary.

At around 9:19 AM, Kinetic Engineering was currently trading at Rs90 per share up by Rs3.25 or 3.75% from its previous closing of Rs86.75 per share on the BSE.