Khaitan Chemicals & Fertilizers Limited (KCFL) has reported a significant change in its ownership structure as Majestic Packaging Co Pvt. Ltd., a promoter of the company, has increased its stake to 22.75%. This development marks a notable shift in the company's shareholding pattern.

Recent Acquisitions

According to a regulatory filing by KCFL, Majestic Packaging has recently made two separate share purchases through the open market:

These acquisitions have collectively pushed the aggregate shareholding of the 'Promoter/Promoter Group' in KCFL to 22.75% of the current issued capital.

Regulatory Compliance

The company has duly informed the stock exchanges about this change in shareholding, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency ensures that all stakeholders are kept informed about significant changes in the company's ownership structure.

Market Implications

While the specific reasons for the increased stake have not been disclosed, such moves by promoter entities are often viewed as a sign of confidence in the company's prospects. Investors and market analysts may interpret this development as a positive signal regarding the promoter group's outlook on KCFL's future performance and growth potential.

About Khaitan Chemicals & Fertilizers Limited

Khaitan Chemicals & Fertilizers Limited is a company operating in the chemicals and fertilizers sector, which plays a crucial role in India's agricultural and industrial landscape.

Khaitan Chemicals & Fertilizers Limited (KCFL) has reported a profitable quarter and made a strategic move into renewable energy, according to the company's latest financial results and board meeting outcomes.

Q1 Financial Performance

Khaitan Chemicals & Fertilizers delivered a significant turnaround in Q1 performance, reporting a net profit of 214.00 million rupees compared to a loss of 167.00 million rupees in the same period last year. The company's revenue grew substantially to 2.34 billion rupees from 1.30 billion rupees year-over-year. EBITDA improved dramatically to 317.00 million rupees versus a loss of 69.00 million rupees in the previous year, with EBITDA margin expanding to 13.53% from negative 5.28% year-over-year.

Strategic Acquisition in Solar Power

In a significant move towards sustainable energy, Khaitan Chemicals announced the acquisition of a 26% equity stake in KRSKA Solar Private Limited. The Board approved the execution of a Share Subscription and Shareholders' Agreement (SSSHA) with KRSKA Solar Private Limited and KRSKA Capital Private Limited.

Key details of the acquisition include:

• KCFL will subscribe to 1,333 equity shares at ₹10 each, amounting to ₹13,330.
• Additionally, the company will acquire 377,989 Optionally Convertible Redeemable Preference Shares (OCRPS) at ₹10 each, totaling ₹3,779,890.
• The total investment amounts to ₹3,793,220 for a 26% stake in KRSKA Solar.

Renewable Energy Strategy

The acquisition aligns with KCFL's strategy to optimize energy costs and reduce its carbon footprint. KRSKA Solar operates a grid-connected solar power plant in Jhukar Jogi Village, Lateri Tehsil, Vidisha District, Madhya Pradesh.

Key points of the strategic move:

• KCFL aims to procure renewable power through the group captive mechanism.
• The company will consume 85% of the power generated by the solar plant.
• The solar power supply is expected to commence within 2-3 months from the completion of equity infusion.

Outlook

This strategic investment in solar power is expected to help Khaitan Chemicals reduce its dependency on grid power, optimize energy costs, and contribute to environmental sustainability. The move also positions the company to meet the ownership criteria prescribed under Rule 3 of the Electricity Rules, 2005.

The Board meeting, which commenced at 3:00 PM and concluded at 6:05 PM on July 23, marked these significant decisions for the company's future growth and sustainability initiatives.