Further, the company is also issuing 1 lakh shares at Rs 156 each to Ambit Corporate Finance.

A total of 2,350 shares changed hands in the counter on BSE.

As per a report last year, the Kinetic group, in a bid to enhance shareholders value, will restructure operations of Kinetic Motor Company and Kinetic Engineering, its umbrella companies.

While Kinetic Motor will continue manufacturing mobikes, scooters and mopeds, Kinetic Engineering will exclusively focus on the emerging auto-components business, the report mentions. Currently, both companies are involved in both product lines. The paper also quotes sources close to the development saying, the companies may woo strategic investors on completion of restructuring.

As a precursor to the proposed restructuring, the group had announced transferring Kinetic Engineerings moped assembly unit at Supa, Maharashtra, to Kinetic Motor Co. This proposal to transfer the Supa facility will be tabled before shareholders at a meeting to be held tomorrow.

Kinetic Engineering was incorporated as a private limited company in October 1970. It became a public limited company with effect from 1 October 1975.

In January 1972, the company started producing the Luna brand of mopeds, designed and developed indigenously at its Chinchwad plant, near Pune. In 1984, along with Honda Motor Company, Japan, the company promoted Kinetic Honda Motors to manufacture scooters based on the latest technology sourced from Honda Motor Company. In 1998, it raised its stake in Kinetic Honda Motor (KHML) to 70% as per an agreement signed with Honda Motor Co, thereby making it a subsidiary.

It introduced the 73-cc Pride in 1994. At present it produces four models -- Luna, Spark, Safari and Pride. It produces auto components commercially. During 1996-97, KEL launched a new version of Pride -- Pride Fx, K4-100 -- a four stroke step through motorcycle and a new look Safari which has been renamed as Safari - V2.

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