Kinetic Engg hits roof on Reliance Capital buy

DALAL STREET SPIKES

Kinetic Engineering (KEL) hit the upper circuit of five per cent to close at Rs 193.55 after Reliance Capital picked up 14 per cent stake in the company.

Reliance Capital will subscribe KEL's shares through its division Reliance Capital Private equity besides investing in equity warrants convertible at a fixed price of Rs 178 per equity share.

The proceeds from the investment will be utilised to enhance the focus on manufacturing of automotive components for Indian and global automotive companies.

This is expected to boost the long term revenues of KEL.