Citicorp Finance to invest Rs94 crore in Kinetic Motor Company
22 June 2006
Chennai: The board of Kinetic Motor Company Limited has invited Citicorp Finance (India) Limited to be a financial investor in the company. Accordingly the Kinetic Motor Company would issue 80 lakh secured redeemable non-convertible debentures with a face value of Rs100, offering 9.5-per cent interest; 21.5-lakh secured redeemable convertible debentures with a face value of Rs65 and 15 lakh warrants convertible into equity within 18 months from the date of issue.
The fully convertible debentures are to be converted into equity shares within 12 months from the date of issue at Rs65 per share (Rs10 face value and Rs55 premium).
The Kinetic Motor Company has to get the approval of its shareholders for the issue. The company will hold an extra-ordinary general meeting on July 19, 2006, for the purpose. The proceeds of the proposed issue would be utilised towards financing the company's capital expenditure and meeting its long-term working capital needs.
According to the managing director, Kinetic Motor Company, Sulajja Firodia Motwani, "In the coming months, we plan to introduce a never-seen-before range of Italian scooters and also to manufacture San Yang Motor Industry Company Ltd's (SYM) scooter models incorporating the latest advanced technology, thus consolidating and reflecting our commitment to the Indian consumers."
The company has entered into an agreement with the Taiwanese company, the $1 billion SYM, for making the latter's model in India.
The company has earlier acquired a range of seven advanced scooter models from Italjet Spa of Italy, which it is now introducing in a phased manner in the Indian market. The first of the Italiano series Kinetic Blaze was launched