Auto component manufacturer Kinetic Engineering (KEL) has announced an investment of Rs 1.77 billion through convertible warrants to achieve its target of Rs 10 billion revenue by 2029, up from Rs 1.50 billion currently.

The investment is primarily aimed at expanding the electric vehicle (EV) business and diversifying its strategy by exploring opportunities beyond the automotive sector. Approximately Rs 1 billion of the investment will be directed towards KEL’s EV business, which is expected to contribute up to Rs 6.50 billion of the targeted Rs 10 billion revenue.

The first phase of this initiative includes an infusion of Rs 550 million by March 2025, with the remaining funds deployed in stages until 2027. This capital injection, contingent on approvals from the Securities and Exchange Board of India (Sebi) and shareholders, aims to strengthen Kinetic’s EV component manufacturing capabilities, drive innovation, and enhance working capital. By 2027, the promoters’ stake in the company is expected to increase from 59 per cent to 70 per cent.