Powertrain component manufacturer Kinetic Engineering is raising Rs 100 crore through quasi-equity offerings to leading investment houses to part-finance its business plans. The Pune-based two- wheeler major approved an investment of Rs 30 crore through compulsory convertible preference shares to AIG and is also floating Rs 70-crore foreign currency convertible bonds (FCCBs). The issue of both instruments has been proposed at a minimum price of Rs 156. Kinetic Engineering has mandated UK-based KBC Financial Products and Kotak Mahindra UK as joint lead managers for the FCCB issue.

The funds raised through the preference share issue would be utilised as growth capital for working capital and the funds from the bonds would be used for capital expenditure requirements for executing orders for gearbox of the Tata Motors much-awaited sub-$3,000 small car and other export programmes. Kinetic is also setting up a gearbox plant in Ahmedabad and an assembly line in Singur. With these investments in place, Kinetic intends to set up a new gear manufacturing facility to manufacture gears and other powertrain components ? engines and transmissions to supply to Italy- based MV Agusta motorcycles and other passenger car players.