Kinetic Engineering Limited, a leading player in the automobile and engineering industry, has officially received BSE Limited's approval for the listing of 80,000 equity shares. The approval, granted on 12th March 2025, pertains to the issuance of these shares on a preferential basis to the promoter after the conversion of Optionally Convertible Cumulative Preference Shares (OCCPS).

As per the regulatory filing, these shares were issued at a face value of Rs. 10 per share, with a premium of Rs. 110 per share, bringing the total issue price to Rs. 120 per share. The issuance was carried out in compliance with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, ensuring full adherence to the prescribed market guidelines.

Details of the Listing Approval

The listing approval was granted via Letter No. LOD/PREF/KS/FIP/1950/2024-25, confirming that the shares are now eligible for trading on the BSE Limited (Bombay Stock Exchange). This move further strengthens the financial structure of Kinetic Engineering Limited, as it enables the promoter to increase their equity stake in the company.

What is OCCPS and Why is This Conversion Important?

Optionally Convertible Cumulative Preference Shares (OCCPS) are a type of financial instrument that allows holders to convert their preference shares into equity shares at a predetermined price. In this case, Kinetic Engineering’s promoter exercised the conversion option, leading to the issuance of 80,000 equity shares, thereby enhancing their shareholding position in the company.

Impact on Kinetic Engineering and Market Response

• The conversion of OCCPS into equity shares strengthens Kinetic Engineering’s financial position by increasing the promoter’s stake, reflecting confidence in the company’s growth prospects.
• The move aligns with SEBI regulations and ensures that shareholders and investors remain informed about significant corporate developments.
• Investors will now be able to see these additional shares reflected in BSE's official records, reinforcing transparency and compliance with market standards.

SEBI Regulations and Compliance

Kinetic Engineering Limited’s decision to convert OCCPS into equity shares and obtain BSE listing approval follows the necessary SEBI Listing Obligations and Disclosure Requirements (LODR), 2015. The company's adherence to SEBI norms ensures regulatory compliance and enhances investor confidence in its corporate governance standards.

Conclusion

With this latest development, Kinetic Engineering Limited has successfully expanded its equity base, strengthening its capital structure and ensuring regulatory compliance. The BSE’s approval marks an essential step in reinforcing the company's financial framework while benefiting both the promoters and investors. Market watchers and stakeholders will closely follow the implications of this share listing, particularly in terms of its impact on Kinetic Engineering’s stock performance and future growth strategies.

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