Mumbai, June 1 (IANS) Kiri Industries Limited, a dye and chemical maker, has announced that the company posted a net loss of Rs 84.6 crore during the quarter (Q4 FY25), which is much higher than the Rs 9.6 crore loss it reported in the same period previous fiscal (Q4 FY24).
Revenue also declined by 6.5 per cent, falling to Rs 205 crore in the last quarter of FY25 from Rs 219.3 crore a year ago, according to its stock exchange filing.
Despite the disappointing earnings, the company made a major announcement along with the financial results.
Kiri Industries has signed a Share Purchase Agreement (SPA) with Zhejiang Longsheng Group to sell its entire 37.57 per cent stake in DyStar, a global dyes and chemicals company.
The base sale price is $676.26 million, which is roughly Rs 5,765 crore at current exchange rates.
This deal is notable because the sale value is much higher than Kiri Industries’ current market capitalisation, which stands at about Rs 3,800 crore.
As part of the agreement, Zhejiang Longsheng Group will acquire 26.23 lakh equity shares held by Kiri Industries in DyStar.
In addition to the base amount, Kiri Industries may also receive an extra $20.29 million.
This would be paid if there is any shortfall in the base amount or if the buyer needs to fulfil other responsibilities under the agreement.
However, the final amount could still change depending on certain conditions, the company said in its regulatory filing.
The deal is still subject to regulatory approvals and other closing formalities. Once completed, this sale could provide a major cash boost to Kiri Industries and help reshape its business direction.
Meanwhile, shares of Kiri Industries dropped 9.43 per cent on Friday to Rs 658 on the Bombay Stock Exchange (BSE).
Kiri Industries Limited (KIL) is an Indian company engaged in the manufacturing and export of dyes, dye intermediates, and basic chemicals.
As a fully integrated dyes and chemicals producer, KIL operates a wide range of facilities. The company is listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
–IANS
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