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Multi-engineering conglomerate Kirloskar Group is transferring its travel services undertaking to a new company being incorporated under the name Pneumatic Holdings Ltd, which would be listed separately, while merging two listed group firms, as per a statement.

The group's listed investment arm Kirloskar Brother Investments Ltd (KBIL) and Kirloskar Oil Engines Ltd (KOEL), which specialises in the manufacturing of both air-cooled and liquid-cooled diesel engines, are being merged, it said in the filing.

Upon the scheme becoming effective, the shareholders of KBIL will get one equity share of face value of Rs 10 each of the new company against one equity share of the company and 76 equity shares of face value of Rs 2 each of KOEL against five equity shares of the company. KOEL counts Nalanda Capital as a shareholder.

Axis Capital acted as the financial advisor to Kirloskar Group for the restruturing.

Kirloskar Group has over half a dozen listed firms and in the past gone through a string of mergers and demergers as part of restructuring.

In June 2010, the group transferred its business of engines and auto components to Kirloskar Engines India Ltd (KEIL) which got rechristened as Kirloskar Oil Engines Ltd.

KOEL manufactures diesel engines, agricultural pumpsets and generating sets. The company has four manufacturing units in India has overseas offices in Dubai, South Africa, and Kenya.

(Edited by Joby Puthuparampil Johnson)

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