Market Performance
Kiri Industries' share price fell sharply on May 30 after a major divestment announcement.
- At 9:40 AM on NSE, shares were trading 5% lower at ₹691 apiece
- The stock has a 52-week low of ₹280 and a 52-week high of ₹740
- Market Capitalisation: ₹3,775 Crore
This development triggered a significant investor reaction as the stock dropped intraday by as much as 8%.
Significant Development: DyStar Stake Sale
In a key strategic move, Kiri Industries confirmed it will sell its entire 37.6% stake in DyStar Global Holdings to Zhejiang Longsheng Group, a China-based chemical manufacturer.
Deal Breakdown:
- Equity Shares Sold: 2,623,354
- Stake: 37.57% of DyStar Global Holdings
- Base Consideration: $676.26 million
- Additional Consideration: $20.29 million
- This covers any shortfall or obligations under the Share Purchase Agreement (SPA)
This brings the total deal value to approximately $697 million.
Buyer Details: Zhejiang Longsheng
Zhejiang Longsheng Group Co. Ltd is a leading China-based company involved in the production of textile chemicals and intermediates.
Transaction Timeline
The long-stop date for the deal's conditions to be fulfilled or waived is:
- October 2, 2025
- With a possible extension up to November 3, 2025
The sale is being advised by J.P. Morgan Securities Asia Private Limited, which serves as the financial advisor to Kiri Industries in connection with this transaction.
Company Details: Kiri Industries
The company is also expected to release its March quarter results later today, which could provide more insights into its financial performance following the deal.
Summary
- Kiri Industries has announced the sale of its 37.6% stake in DyStar Global to Zhejiang Longsheng Group for $697 million
- The stock reacted negatively, falling up to 8% intraday and closing 5% lower at ₹691
- The deal marks a significant shift for Kiri, and all eyes are now on how it will redeploy the proceeds post-transaction
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