The Bombay High Court has approved the merger of Kinetic Group companies Kinetic Engineering (KEL) and Kinetic Motor Company (KMCL). This marks the completion of the Pune-based group’s restructuring plan to streamline its manufacturing and engineering entities and be a player in the automotive systems and components business with Powertrain systems as its focus.

As a result of the merger, the investment of 612 lakh shares of Rs 10 each in Mahindra Two Wheelers Ltd will be directly held by the KEL, valued at around Rs 61 crore. Also the stake of the promoters in Kinetic Engineering would reduce to 53 per cent from 57 per cent. The balance shareholding will be held by public and financial institutions.

Sulajja Firodia Motwani, Vice-Chairperson, KEL, said: “We are pleased to announce the culmination of the initiatives undertaken that aim at streamlining our business and aids in executing our strategic plan to focus upon the enormous opportunities prevailing in Indian and global market place.” The RBI has also approved the extension of its conversion/redemption of $18 million FCCBs till February next year (from Feb 2013).

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