Kiri Industries Limited (KIL), a leading manufacturer of dyes and intermediates, has announced a significant change in its shareholding structure. The company's promoter group, led by Manishkumar P Kiri, has increased its stake from 6.82% to 13.64% through the conversion of warrants into equity shares.

Warrant Conversion Details

The Board of Directors of Kiri Industries approved the allotment of 4,393,592 equity shares to the promoter group. This allotment was made on a preferential basis through the conversion of an equal number of warrants. The transaction has resulted in a substantial increase in the promoters' voting rights within the company.

Impact on Share Capital

Following this conversion, Kiri Industries' equity share capital has expanded from Rs. 556.29 crore (55.63 million shares) to Rs. 600.23 crore (60.02 million shares). This represents an increase of approximately 7.9% in the total number of outstanding shares.

Promoter Group Composition

The promoter group involved in this transaction includes:

• Manishkumar P Kiri
• Anupama Manishkumar Kiri
• Arunaben Pravinbhai Kiri
• Hemil Manishkumar Kiri

These individuals are listed as the primary acquirers, along with several other persons acting in concert.

Regulatory Compliance

The disclosure of this transaction was made in compliance with Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation requires prompt disclosure of any significant changes in shareholding patterns, particularly those involving promoter groups.

Company Overview

Kiri Industries Limited, established in 1998, has emerged as one of India's largest manufacturers and exporters of dyes, dye intermediates, and basic chemicals. The company is known for its 'Zero Effluent' approach and has a strong presence in over 50 countries across seven continents.

This move by the promoter group to increase their stake could be seen as a sign of confidence in the company's future prospects. However, investors are advised to conduct their own research and consider market conditions before making any investment decisions.

Kiri Industries , a leading player in the dyes and dye intermediates industry, has reported mixed financial results for the first quarter. The company demonstrated revenue growth but faced challenges in profitability.

Revenue Growth

Kiri Industries reported a consolidated revenue of ₹202.10 crore for Q1, marking a 10.2% increase compared to the same quarter last year. On a standalone basis, the company's revenue stood at ₹180.80 crore.

Profit Decline

Despite the revenue growth, the company experienced a significant drop in consolidated net profit. Kiri Industries posted a consolidated net loss of ₹51.40 crore in Q1, compared to a loss of ₹1.10 crore in the corresponding quarter of the previous year.

Operational Performance

The company's EBITDA margin for Q1 was negative at 8.07%. However, on a standalone basis, Kiri Industries achieved a net profit of ₹7.20 crore with a positive PAT margin of 3.98%.

Challenges and Factors Affecting Performance

Several factors contributed to the mixed performance:

1. Pricing Pressures: The company faced challenges due to market competition, impacting its ability to maintain pricing.

2. Raw Material Costs: Inflation in raw material costs affected the company's profitability.

3. Legal Expenses: The company incurred expenses related to ongoing legal proceedings against Longsheng Group.

Revenue Breakdown

Kiri Industries' revenue composition for the quarter was as follows:

DyStar Sale Update

Kiri Industries has entered into a Share Purchase Agreement for the sale of its 37.57% stake in DyStar to Zhejiang Longsheng Group. The base consideration for this transaction is set at USD 676.26 million, with transaction completion expected by October 2, 2025.

Future Outlook

While facing challenges, Kiri Industries continues to navigate the current market conditions. The company's focus remains on optimizing its product mix, improving operational efficiencies, and managing costs to create long-term value for stakeholders.

The completion of the DyStar stake sale, expected later in the year, may have significant implications for the company's financial position and future strategies.