Kirloskar Electric shares hit 5% upper circuit as firm aims to raise ₹40 crore from promoters

Kirloskar Electric shares surged 5% to hit the upper circuit level on Thursday, July 16, after the company announced the outcome of its board meeting to raise ₹40 crore from the promoter group shareholders via a preferential share issue.

As per an NSE filing, the company held a board meeting on July 16, after which the directors approved the issue of equity shares to the promoter group shareholder, Kirloskar Power Equipments, through a preferential equity share issue, subject to the necessary approvals.

If approved by the regulatory authorities and shareholders, Kirloskar Electric will issue up to 34,68,007 or 34.68 lakh equity shares at a floor price of ₹115.34 apiece in an effort to raise ₹40 crore from the promoters.

“Approved to issue up to 34,68,007 equity shares at a floor price of ₹115.34 each, aggregating up to ₹40,00,00,000 to Kirloskar Power Equipments Limited, a promoter group Company by way of preferential issue in accordance with the provisions of Section 42 and Section 62(1)(c) of the Companies Act, 2013,” the company informed the stock exchanges.

The fundraising move needs the necessary approval of the members in the upcoming general meeting and from the regulatory authorities before the preferential issue.

Shares of Kirloskar Electric gained 5% to hit the intraday high and upper circuit level of ₹121.52 apiece during Thursday’s trading session, compared to ₹115.74 at the previous stock market close, as per NSE data.

Appointment updates

Kirloskar Electric also disclosed that the whole-time director and executive chairman of the company, Vijay R Kirloskar, will be re-appointed to his role for a term of three years effective from August 12, 2026, subject to the approval of the shareholders.

The company also said that the director will be liable to retire by rotation, as per the exchange filing.

The firm also appointed M/s. T. Sriram, Mehta & Tadimalla, Chartered Accountants, based out of Bangalore, as the Internal Auditors of the company for the financial year ending 2026-27.

Share price performance

Kirloskar Electric shares have delivered more than 481% returns on investment to shareholders in the last five years, according to NSE data. However, the company’s stock has lost 2% in the last three years and 12.5% in past one year.

In contrast, the company’s stock has gained 16% on a year-to-date (YTD) basis in the current calendar year and was up 17% in the last one month. Kirloskar Electric shares were trading 9.5% higher in the last five market sessions on NSE.

The company shares surged to its 52-week high of ₹148 on April 20, 2026, while the 52-week low was at ₹75.47 on January 27, 2026, as per the exchange data. Kirloskar Electric’s market capitalisation (m-cap) was at ₹796 crore as of the trading session on July 16.