Kanoria Chemicals & Industries Limited (KCIL) has received a resounding approval from its shareholders for the divestment of its material subsidiary. The special resolution, which proposed the dilution and divestment of 100% shareholding in the company's material subsidiary, was passed through a postal ballot conducted via remote e-voting.

Voting Results

The shareholders showed overwhelming support for the divestment plan:

Voting Process Details

• E-voting Period: August 5 to September 3
• Cut-off Date: July 25
• Total Shareholders: 18,580 (as of the cut-off date)
• Participating Shareholders: 232

Scrutinizer's Report

The voting process was scrutinized by Amit Choraria, a practicing Chartered Accountant, who was appointed as the Scrutinizer for the postal ballot. The scrutinizer's report, dated September 4, confirmed the fair and transparent conduct of the remote e-voting process.

Shareholder Participation

The voting saw participation from various categories of shareholders:

• Promoter and Promoter Group: 6 shareholders participated, casting 32,072,141 votes (98.66% of their total shareholding)
• Public Institutions: A small portion of institutional shareholders participated, with 3,342 votes cast
• Public Non-Institutions: 25,428 votes were cast by non-institutional public shareholders

Management's Response

H.K. Khaitan, Director of Kanoria Chemicals & Industries Limited, signed off on the voting results, confirming that the resolution was passed with the requisite majority.

Implications

The approval for this divestment marks a significant move for Kanoria Chemicals & Industries Limited. While the specific details of the material subsidiary and the reasons for divestment were not provided in the available data, such a decision typically indicates a strategic shift in a company's focus or portfolio management.

Shareholders and market observers will likely be keen to see how this divestment impacts KCIL's future operations and financial performance. The overwhelming support from shareholders suggests confidence in the management's decision and strategy moving forward.

Kanoria Chemicals & Industries Limited , a prominent player in the chemical industry, has reported a significant financial setback in its first quarter results for the fiscal year 2026, coupled with strategic changes in its subsidiary holdings.

Financial Performance

The company announced a standalone net loss of ₹767.00 lakhs for the quarter ended June 30, 2025, a stark contrast to the profit of ₹64.00 lakhs recorded in the same quarter of the previous year. This downturn comes despite an increase in revenue from operations, which rose to ₹18,658.00 lakhs from ₹16,168.00 lakhs year-on-year.

On a consolidated basis, the situation appears more challenging, with the company reporting a loss of ₹1,378.00 lakhs for the quarter.

Segment Performance

Kanoria Chemicals operates across three segments: Chemicals, Electronic Automotive, and Textile. Notably, the Electronic Automotive segment reported a substantial loss of ₹968.00 lakhs during the quarter, contributing significantly to the overall negative performance.

Exceptional Item and Impairment

A key factor impacting the company's financial results was an exceptional item of ₹1,064.00 lakhs, attributed to the impairment of its investment in APAG Holding AG, a subsidiary of the company.

Strategic Divestment Plans

In a significant move, the Board of Directors has approved a proposal for diluting the company's stake in its subsidiary, APAG Holding AG. The plan involves reducing Kanoria Chemicals' ownership from the current 55% to approximately 14.3% through a strategic investor transaction valued at USD 19.38 million.

This divestment strategy is structured in two phases:

1. Phase 1: APAG will issue new equity shares against:

   • Partial conversion of Kanoria Chemicals' loan of EUR 2.64 million
   • Partial conversion of Cosyst Holding AG's (another shareholder) loan of CHF 4.95 million (EUR 5.27 million)
   • Subscription from strategic investor(s) amounting to USD 19.38 million (EUR 17.78 million)

2. Phase 2: Expected in FY 2029-30, Kanoria Chemicals plans to transfer its remaining stake to strategic investor(s) based on an agreed valuation methodology.

Outlook

The company's financial performance, coupled with its strategic divestment plans, signals a period of significant transition for Kanoria Chemicals & Industries Limited. The move to dilute its stake in APAG Holding AG may be seen as an effort to streamline operations and potentially improve the company's financial position in the long term.

As the company navigates through these challenges and strategic changes, stakeholders will be keenly watching how these moves impact its future performance and market position in the chemical industry.