Friday, October 31, 2025

KPIT Tech board approves loans of €20 million from HSBC and £20 million from SMBC for recent deals

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KPIT Technologies Ltd., on Monday, October 28, said its board of directors has given the approval to take a loan of €20 million from HSBC and £20 million from SMBC to fund its recent acquisitions.KPIT Tech said it has acquired the Caresoft Engineering business for a total maximum consideration of $157 million, as per the outcomes released by the company in August and October.

It also made a strategic investment in N-Dream AG and increased its stake in the company to 88.9% on October 7, establishing the firm as its step-down subsidiary for a consideration of 16.35 million euros.

KPIT Tech added that in in-line with its focus on software-defined vehicles, it has invested $10 million in Helm.ai on September 9, 2025.

KPIT Tech had reiterated that its overall funding plan will be a mix of internal accruals and external borrowing to execute this merger and acquisition (M&A) strategy. It said it is proactively securing external borrowing to fund these acquisitions, while ensuring a healthy cash balance.Accordingly, the board on Tuesday gave its consent to avail an unsecured loan of up to €20 million from HSBC and up to £20 million from SMBC in its wholly-owned subsidiary KPIT Technologies (UK) Ltd.

It added that the acquisitions will create greater value of its shareholders by driving substantial growth, securing long-term profitability and enhancing the technology leadership of the firm in relevant markets.

KPIT Tech shares were up 0.2% at ₹1,209.5 apiece around 11 am on Tuesday. The stock has declined 19% this year, so far.

Also Read: Supreme Industries shares fall 4% after cuts to price targets on volumes, margins worries

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