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KPIT Technologies Ltd — Capital/Financing Update 2021
Jul 27, 2021
59234_rns_2021-07-27_e782f13e-999d-431d-b399-b2ccdc144e9c.pdf
Capital/Financing Update
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July 27, 2021
BSE Limited National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, C/1, G Block, Dalal Street, Bandra - Kurla Complex, Bandra (E), Mumbai - 400001. Mumbai – 400051. Scrip ID: KPITTECH Symbol: KPITTECH Scrip Code: 542651 Series: EQ Kind Attn: The Manager, Kind Attn: The Manager, Department of Corporate Services Listing Department
- Subject: Disclosure of events & information pursuant to Regulation 30 – Approval for incorporation of a new Company with Promoters of PathPartner Technology Private Limited.
Dear Sir / Madam,
We wish to inform you that, in accordance with Regulation 30 read with Part A of Schedule III of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, ("SEBI Regulations") Board of Directors of the Company, at its meeting has approved the following:
As announced by us on June 21, 2021, the Board of Directors have approved the investment for a staggered purchase of 100% equity of PathPartner Technology Private Limited (“PathPartner”). PathPartner has a small business (~ 3%) related to hardwarebased products. In line with our strategy to focus only on software-led business, this hardware led business is to be divested into a new company (“NewCo”) before KPIT investment into controlling stake of PathPartner, services business. The NewCo business is related to camera and radar based, vehicle occupant monitoring and related safety regulations. This business can help KPIT accelerate the existing services business and quicken delivery of large engagements. With this view in mind, KPIT proposes to invest ₹ 9 million for a non-controlling 30% equity stake in the NewCo. This will help KPIT access the required NewCo business for its services business, as required.
O +91 20 6770 6000 E [email protected] W kpit.com
KPIT Technologies Limited Registered & Corporate Office: Plot No. 17, Rajiv Gandhi Infotech Park, MIDC-SEZ, Phase-III, Maan, Taluka-Mulshi, Hinjawadi, Pune-411057, India. CIN: L74999PN2018PLC174192
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The details as required under SEBI Regulations, read with SEBI Circular dated September 9, 2015 are given in Annexure A to this letter.
Kindly take the same on your records.
Thanking you.
Yours faithfully,
For KPIT Technologies Limited
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Nida Deshpande
Company Secretary & Compliance Officer
O +91 20 6770 6000 E [email protected] W kpit.com
KPIT Technologies Limited Registered & Corporate Office: Plot No. 17, Rajiv Gandhi Infotech Park, MIDC-SEZ, Phase-III, Maan, Taluka-Mulshi, Hinjawadi, Pune-411057, India. CIN: L74999PN2018PLC174192
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| Annexure A | ||
|---|---|---|
| Sr.No. | Details | Response |
| a. | Name of the target entity, detailsin brief such as size, turnover etc. | Name:PathPartner Interior Sensing Private Limited,or any other names as may be approved by Ministryof Corporate Affairs (“NewCo”).Proposed Authorised Capital:Rs. 5,00,00,000 (Rupees five crores only)Proposed Paid up Capital:Rs. 3,00,00,000(Rupees three crores only) |
| b. | Whether the acquisition wouldfallwithinrelatedpartytransaction(s) and whether thepromoter/promotergroup/groupcompanieshaveanyinterestintheentitybeingacquired?Ifyes,natureofinterest and details thereof andwhether the same is done at“arms length” | The New company once incorporated, will not bea related party of the Company.The Promoter/ promoter group/ group companiesare not interested in the transaction.None of the KPIT directors have any interest inPathPartner.However, KPIT will nominate its representative asNominee Director of KPIT in NewCo. |
| c. | Industry to which the entity beingacquired belongs | Product Engineering Technologies primarily forAutomotive industry. |
| d. | Objects and effects of acquisition(including but not limited to,disclosureofreasonsforacquisition of target entity, if itsbusiness is outside the main lineof business of the listed entity) | The NewCo to be incorporated in July/August 2021in India and shall carry out business in the field ofProduct Engineering Technologies primarily forAutomotive industry. |
| e. | Brief details of any governmentalor regulatory approvals requiredfor the acquisition | --N.A.-- |
O +91 20 6770 6000 E [email protected] W kpit.com
KPIT Technologies Limited Registered & Corporate Office: Plot No. 17, Rajiv Gandhi Infotech Park, MIDC-SEZ, Phase-III, Maan, Taluka-Mulshi, Hinjawadi, Pune-411057, India. CIN: L74999PN2018PLC174192
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| f. | Indicativetimeperiodfor | --N.A.-- |
|---|---|---|
| completion of the acquisition | ||
| g. | Natureofconsideration- | 30% subscription to the paid-up share capital in |
| whether cash consideration or | cash. | |
| share swap and details of the | ||
| same | ||
| h. | Cost of acquisition or the price at | Maximum investment of Rs. 90,00,000 towards |
| which the shares are acquired | 30% subscription to the paid-up share capital. | |
| i. | Percentage of shareholding / | 30% of total paid-up share capital of NewCo. |
| control acquired and / or number | ||
| of shares acquired | ||
| j. | Brief background about the entity | --N.A.-- |
| acquiredintermsof | ||
| products/lineofbusiness | ||
| acquired, date of incorporation, | ||
| history of last 3 years turnover, | ||
| country in which the acquired | ||
| entity has presence and any | ||
| other significant information (in | ||
| brief) |
KPIT Technologies Limited
O +91 20 6770 6000 E [email protected] W kpit.com
Registered & Corporate Office: Plot No. 17, Rajiv Gandhi Infotech Park, MIDC-SEZ, Phase-III, Maan, Taluka-Mulshi, Hinjawadi, Pune-411057, India. CIN: L74999PN2018PLC174192