KOEL Approves Shareholders' Agreement with Arka Fincap for TPG Investment

Kirloskar Oil Engines Limited (KOEL) announced that its Board of Directors has approved the execution of a Shareholders' Agreement (SHA) with Arka Fincap Limited (AFL), a step-down subsidiary, Arka Financial Holdings Private Limited (AFHPL), a wholly-owned subsidiary, and TPG SG Arca Pte. Ltd. (TPG/Investor). The SHA governs the inter-se rights and obligations of the parties concerning AFL, following TPG's proposed investment in AFL. KOEL currently holds 90.279% of AFL through AFHPL. Post-investment, KOEL's stake will reduce to 68.587% after the first tranche and 62.607% after the second tranche. The agreement includes provisions for governance, minority protection, and exit rights, with TPG having the right to appoint one nominee director. The SHA does not impact KOEL's management or control.