Kirloskar Oil Engines to make further investment in AFHPL

The Board of Directors of Kirloskar Oil Engines Limited in the meeting held on 9th February 2022, has given approval to invest in Rights Issue of equity shares having face value of Rs. 10/- each of Arka Financial Holdings Private Limited (AFHPL), a wholly owned subsidiary of the Company, upto Rs. 6 Crores as per payment terms covered in the Letter of Offer to be issued by AFHPL to the Company. As communicated vide letter dated 13th May 2021, 28th October 2021 and 11th January 2022, the Board of Directors has decided to keep the total investment in financial service subsidiaries, directly or indirectly, capped at Rs. 1,000 Crores including the investment made so far.

Considering the Company's plan for enhancing the strategic flexibility to build vibrant robust platform for the financial service business, the Board of Directors in the meeting held on 9th February 2022 had given its in-principle approval for formation of Private Company as a wholly owned subsidiary of AFHPL to act as Investment Manager and also formation of Trust to act as Alternative Investment Fund for the purpose of Management of funds and undertaking Advisory Business. Further, AFHPL will be acting as a sponsor to the Alternative Investment Fund.

Shares of Kirloskar Oil Engines Limited was last trading in BSE at Rs. 163.15 as compared to the previous close of Rs. 160.55. The total number of shares traded during the day was 57944 in over 3072 trades.

The stock hit an intraday high of Rs. 167.00 and intraday low of 161.30. The net turnover during the day was Rs. 9441046.00.

Source : Equity Bulls

Keywords

KirloskarOilEngines INE146L01010 Investment ArkaFinancialHoldings AIF