Share Purchase Agreement executed to acquire 100% of Kirloskar Trading SA for INR 8.25 Crore
KOEL's wholly owned UAE arm KIME has executed a Share Purchase Agreement on 30th September 2026 to buy 100% equity of Kirloskar Trading SA (PTY) Ltd, South Africa — a Promoter Group company — for INR 8.25 Crore (ZAR 14.08 MN).
- Acquisition Price
- INR 8.25 Crore (ZAR 14.08 MN)
- Stake Acquired
- 100% equity of Kirloskar Trading SA (PTY) Ltd, South Africa
- Target Total Income (FY2026)
- INR 26.03 Crore for 15-month period Jan 2025–Mar 2026
- Acquirer
- KIME (Kirloskar International ME FZE), KOEL's wholly owned UAE subsidiary
- Transaction Date
- 30th September 2026
What was announced
KOEL informed the exchanges that its wholly owned UAE subsidiary, Kirloskar International ME FZE (KIME), executed a Share Purchase Agreement on 30th September 2026 to purchase 100% equity shares of Kirloskar Trading SA (PTY) Limited, Johannesburg, South Africa (KTSPL).
Deal terms
- Consideration: INR 8.25 Crore (ZAR 14.08 MN), in cash.
- Earlier communicated plan was for KIME to use approx. INR 5.5 Crore towards this purchase; the higher figure is attributed to closing adjustments, primarily an increase in cash and cash equivalents.
- Stake acquired: 100%, subject to closing conditions.
- KOEL's Board had approved investing approx. INR 8 Crore in KIME via 3200 Equity Shares at AED 1000 per share, aggregating AED 3.2 million.
About the target
KTSPL was incorporated on 29th October 2013 and acts as an authorised agent identifying customer needs, enabling market-specific product development and servicing customers in Africa (South Africa, Kenya, Nigeria and others). It works on a Stock and Sale model and earns commission where KOEL bills directly.
Reported total income
- FY2026 (Jan 2025 to Mar 2026, 15-month period, unaudited): INR 26.03 Crore (ZAR 47,163,169)
- FY2025 (Jan to Dec, provisional): INR 15.5 Crore
- FY2024 (Jan to Dec, audited): INR 17.6 Crore
- FY2023 (Jan to Dec, audited): INR 21.0 Crore
Exchange rate used: 1 ZAR = 5.52 INR as on 31st March 2026.
Related party angle
KTSPL is a Promoter Group company of KOEL. The company states the transaction is carried out on an arm's length basis.
Rationale
The stated object is to expand KOEL's footprint in the Africa region, with an owned entity preferred over a distributor as it gives direct connect with end customers. Post completion, KTSPL becomes a wholly owned subsidiary of KIME and a step-down subsidiary of KOEL. Approvals or intimations from relevant regulatory or statutory authorities, as applicable, follow the execution of the agreement.
Also from Kirloskar Oil Engines
Wholly owned subsidiary incorporated in the Netherlands as 'Kirloskar International B.V.'
1 Oct 2026
KIME completes purchase of 100% equity shares of KTSPL; KTSPL now a step-down subsidiary
1 Oct 2026
Kirloskar Oil shares rose 11.5%, its biggest single day gain and volume in three months, bucking the market trend
29 Sep 2026
More numbers
- Acquisition consideration for 100% of KTSPLINR 8.25 Crore
- Acquisition consideration in ZARZAR 14.08 MN
- Earlier indicated amount for KTSPL purchaseapprox. INR 5.5 Crore
- Board-approved investment in KIMEapprox. INR 8 Crore
- Equity shares of KIME subscribed3200 Equity Shares
- Price per KIME shareAED 1000 per share
- Aggregate KIME considerationAED 3.2 million
- Stake acquired in KTSPL100%
- KTSPL total income FY2026 (15-month, unaudited)INR 26.03 Crore
- KTSPL total income FY2025 (provisional)INR 15.5 Crore
- KTSPL total income FY2024 (audited)INR 17.6 Crore
- KTSPL total income FY2023 (audited)INR 21.0 Crore
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