Stock Report

Knowledge Marine & Engineering Works Ltd raises INR 284.81 Crores through preferential issue

Posted On : 2025-09-17 23:12:26( TIMEZONE : IST )

Knowledge Marine & Engineering Works Limited ("KMEW" or the "Company"), a leading provider of marine engineering solutions and dredging services, announced the successful completion of a preferential issue of equity shares and warrants amounting to INR 284.81 Crores (approx. USD 32.30 million).

As part of this round, funds advised by Convergent Finance LLP are going to invest INR 240 Cr (USD 27.2 million) for a 10.3% stake in the Company.

Founded in 2018, Convergent Finance is led by Harsha Raghavan, an industry veteran with 28 years of investment experience, who previously founded and led Fairfax's investment activities in India. The team has a track record of investing more than $2.5 billion over a twelve-year period.

Harsha Raghavan, Managing Partner at Convergent Finance LLP said, "Knowledge Marine has established itself as a high-quality engineering and services company, led by the best team in the country. The company has a diversified fleet and technical capabilities to execute marine engineering contracts in India and globally. We are excited to work with Sujay Kewalramani, CEO of the Company, and KMEW team to scale operations, invest in new assets and pursue both domestic and international opportunities.

We target resilient, cash-generating businesses led by experienced teams, showcasing capability to become category definers. Our focus is on growth investments and mid-market buyouts, targeting both public and private companies. We seek significant equity stakes to drive hands-on, transformative impact."

Sujay Kewalramani, Chief Executive Officer of KMEW, also participated, subscribing to INR 14.80 Crores (approx. USD 1.7 million) of warrants, underscoring his confidence in the business.

Knowledge Marine is listed on both the Bombay Stock Exchange and the National Stock Exchange. Founded in 2015, the Company has rapidly emerged as one of India's most trusted marine engineering partners, with specialization in dredging, marine infrastructure, and vessel services. Today, KMEW operates a modern fleet of 40 vessels including dredgers and support craft, and through the recent acquisition of Kamal Marine & Engineering Works Pvt. Ltd., has positioned itself to expand into shipbuilding.

Sujay Kewalramani, CEO of KMEW, said: "India's maritime industry is at an inflection point, with unprecedented emphasis on infrastructure creation and inland waterways. This fundraise will enable us to expand our fleet, strengthen execution capabilities, and participate in India's evolving maritime growth story. We are delighted to have Convergent Finance as partners in this journey.

Strategic investors participating in funds advised by Convergent Finance LLP include long-term shareholders of a European dredging giant, one of the oldest and largest globally. This relationship creates a unique opportunity for KMEW to align with a partner that already has an active subcontracting business in India, which can directly translate into high value projects. With marquee opportunities such as Vadhvan Port on the horizon, and the ability to collaborate on dredging and marine infrastructure projects across neighboring countries, KMEW gains access not only to global best practices and technical know-how, but also to a pipeline of international opportunities. This strategic dimension significantly strengthens KMEW's ability to scale its operations and broaden its footprint beyond India.

The round also saw strong participation from existing marquee shareholders, who have consistently backed KMEW's growth journey. Noted investor Ashish Kacholia, who first invested in the Company in 2022, Mr. Vijay Karnani through Vimana Capital Management LLP, an early backer from the same year, and Mr. Kamlesh Shah who has been investing since the inception of the Company, have reinvested at the current round. Their continued participation at significantly higher valuations is a strong vote of confidence in KMEW's performance, long term strategy, and leadership.

The total funds raised of INR 284.81 Crores will enable KMEW Group to execute a capex plan of INR 750 Cr over the next 2-3 Years. With a strong bid pipeline exceeding INR 2000 Cr and a historically high conversion rate, the Company is well positioned to accelerate growth, diversify its portfolio, and capture emerging opportunities in the Indian and regional maritime sectors."

Shares of Knowledge Marine & Engineering Works Ltd was last trading in BSE at Rs. 2443.80 as compared to the previous close of Rs. 2407.25. The total number of shares traded during the day was 31846 in over 4005 trades.

The stock hit an intraday high of Rs. 2520.00 and intraday low of 2285.50. The net turnover during the day was Rs. 76402791.00.