Kirloskar Oil Engines (KOEL) Board has greenlit an additional investment of AED 3.2 million (approx. INR 8 Crore) into its wholly-owned subsidiary, Kirloskar International ME FZE, UAE (KIME). This capital infusion is designated to cover KIME’s working capital needs and fund the acquisition of Kirloskar Trading SA (PTY) Limited (KTSPL), a Promoter Group Company based in South Africa. The strategic goal is to expand KOEL’s footprint directly into the Africa Region.
Board Approves Strategic Capital Infusion
The Board of Directors of Kirloskar Oil Engines Limited (KOEL) convened on February 11, 2026, approving a significant further investment into its wholly-owned overseas subsidiary, Kirloskar International ME FZE, UAE (KIME). The aggregate consideration approved is AED 3.2 million (approximately INR 8 Crore), equivalent to subscribing to 3200 Equity Shares at AED 1000 per share.
Rationale for Investment and Acquisition
The primary objectives for this capital injection into KIME are twofold:
- To meet the essential working capital requirements of KIME.
- To facilitate the acquisition of Kirloskar Trading SA (PTY) Limited (KTSPL), located in Johannesburg, South Africa, which is identified as a Promoter Group Company of KOEL.
The strategic objective underlying this move is to establish a direct connect with end customers by expanding KOEL’s footprint in the Africa Region, particularly in the Middle East and North Africa (MENA). KIME, incorporated on January 7, 2025, will also serve as the holding company for future strategic collaborations, joint ventures, and acquisitions.
Details of the Subsidiary, KIME
KIME currently operates in the Industrial: Machinery/Equipment manufacturing, engineering and trading sector. As of the provisional reporting date of December 31, 2025:
- Total Income (Provisional): AED 11.4 million (INR 27.25 Crore) for the period April 1, 2025, to December 31, 2025.
- Net Worth (Provisional): AED 1.01 million (INR 2.48 Crore).
Following this acquisition, KOEL maintains a 100% stake in KIME, confirming its status as a wholly-owned subsidiary. The transaction is confirmed to be conducted on an arm’s length basis, and approvals from relevant regulatory authorities are anticipated to be secured by the indicative completion date of June 30, 2026.
Source: BSE
