Kiri Industries Reports Net Loss, Announces Major Stake Sale in DyStar
Kiri Industries has reported a net loss of ₹84.6 crore for the March quarter, significantly wider than the loss of ₹9.6 crore in the same period last year. The company’s revenue fell 6.5% to ₹205 crore.
Financial Highlights:
- Net Loss: ₹84.6 crore, up from ₹9.6 crore loss in Q4 FY23
- Revenue: ₹205 crore, down 6.5% year-over-year
- Shares: Currently trading 9.43% lower at ₹658
Kiri Industries has entered into a Share Purchase Agreement (SPA) with Zhejiang Longsheng Group. It is a significant development. The deal involves selling its 37.57% stake in DyStar for $676.26 million (approximately ₹5,765 crore). This amount exceeds the company’s current market capitalization of around ₹3,800 crore.
Key Terms of the Agreement:
- Stake Sale: 37.57% stake in DyStar, comprising 26.23 lakh equity shares
- Consideration: $676.26 million, potentially subject to adjustments
- Additional Payment: Up to $20.29 million may be payable to cover shortfalls or fulfill obligations
- Regulatory Approvals: Transaction remains subject to customary closing conditions and regulatory approvals
The deal’s completion will likely have a significant impact on Kiri Industries’ financials and future prospects
