Top Story

e4m_logo.png

Home >> Marketing >> Article

Kinetic Motor to make Rs 10 cr preferential allotment to BCCL

12-October-2005
Font Size   16
Kinetic Motor to make Rs 10 cr preferential allotment to BCCL

Kinetic Motor Company (KMCL) announced on Tuesday that its board of directors has decided to allot 14.18 lakh shares on a preferential basis to Bennett Coleman & Company (BCCL), publishers of The Economic Times, The Times of India and other group publications. BCCL will invest around Rs 10 crore for an 8.6% stake in the Pune-based scooter manufacturer at a price of Rs 70 per share with a face value of Rs 10.

Sulajja Firodia Motwani, joint managing director, Kinetic group, said, “The proceeds of the investment will be used towards brand building and the launch of the new Italjet range of products.” The promoter group's holding, post-allotment, will be 63.8%.

Ms Motwani declined to comment on market speculation about any moves by KMCL to bring in any other strategic investor. KMCL has planned a seven-scooter lineup from Italjet in the 50-250 cc range. These are expected to fall in a price band of Rs 25,000-75,000 and would be manufactured at KMCL's Pithampur (MP) plant, which has an annual capacity of 2.25 lakh scooters. The first of the Italjet scooter lineup, Millennium, will be launched by November end, followed by the Jet Set. KMCL's aggressive plans are expected to help the company turn around its fiscal performance.

KMCL started operations in 1984 as a joint venture with Honda Motor of Japan to market advanced scooters in India. The JV pioneered the variomatic gearless transmission scooter and self-start concepts in the country, till then dominated by Bajaj Auto (BAL).

In 1998, the arrangement with Honda Motor was realigned as a technical collaboration. With that, the company became the first Indian company to buy out the controlling stake from its foreign partner. After the realignment, the company has posted growth in sales and profitability, introduced new models and made several key improvements in its products.

“We believe that the Italjet range is a category-breaking product like the Kinetic Honda gearless scooters, which we pioneered,” Ms Motwani said. Deepak Mane from Biztech Systems advised Kinetic Motor Company on the equity transaction. The company will hold an extraordinary general meeting (EGM) on November 9, seeking approval for the allotment.

Tags

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

In an exclusive data shared with e4m, Pan Masala/Zarda/Gutkha had the highest jump of 185 per cent in terms of ad volumes in the first 14 matches

Bose, who has a career spanning over two decades, was DNA’s Editor-in-Chief. He has previously been associated with the India Today Group

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compe...