Kirloskar Oil Engines invests ~Rs749cr towards rights issue shares of Arka Financial Holdings

12 Jan 2022 , 11:05 AM

Kirloskar Oil Engines Limited has invested ~Rs749cr towards the Rights Issue of equity shares having a 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 Board of Directors had earlier decided to keep the total investment in financial service subsidiaries, directly or indirectly, capped at Rs1,000cr including the investment made so far.

The company has transferred 68,09,02,231 fully paid-up equity shares having a face value of Rs10/- each of Arka Fincap Limited (AFL — Subsidiary Company) to AFHPL, a wholly owned subsidiary at ~Rs749cr 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, the Company is holding 99.998% of AFL on its own and through AFHPL. As such AFL continues to be a subsidiary of the Company.

At around 11.07 am, Kirloskar Oil Engines Ltd was trading at Rs189.15 per share up by Rs0.95 or 0.5% from its previous closing of Rs188.20 per share on the BSE.