Kirloskar Oil Engines invests ~Rs5 crore towards rights issue of Arka Financial Holdings

4 Mar 2022 , 03:10 PM

Kirloskar Oil Engines Limited has invested Rs4,99,20,550/‐ towards the Rights Issue of equity shares having face value of Rs10/‐ each of Arka Financial Holdings Private Limited (AFHPL‐ a wholly owned subsidiary) as per payment terms covered in the Letter of Offer issued by AFHPL to the Company.

The company had communicated vide letter dated May 13, 2021, October 28, 2021, January 11, 2022 and February 9, 2022 the Board of Directors had decided to keep the total investment in financial service subsidiaries, directly or indirectly, capped at Rs1,000 crore including the investment made so far.

The Company has transferred 4,520,000 fully paid‐up equity shares having face value of Rs10/‐ each of Arka Fincap Limited (AFL — Subsidiary Company) to AFHPL, a wholly owned subsidiary at Rs. 49,720,000/‐, which is not less than the fair market value of equity shares of AFL calculated as per provisions of Income Tax Act, 1961 including rules thereunder and amendment(s) thereto. Accordingly, AFHPL is holding 99.998% of AFL. As such AFL is subsidiary of AFHPL and continues to be a step down subsidiary instead of subsidiary of the Company.

At around 3.12 pm, Kirloskar Oil Engines Ltd was trading at Rs127.90 per piece down by Rs2.1 or 1.62% from its previous closing of Rs130 per piece on the BSE.