Kansai Nerolac Sells 60% Stake in Sri Lankan Unit

Kansai Nerolac Paints has announced a significant divestment in its international operations through the sale of a majority stake in its Sri Lankan subsidiary. The Indian paint manufacturer has divested 60% of its shareholding in Kansai Paints Lanka, marking a significant strategic move in the company's international operations.

Strategic Divestment Details

The transaction involves the sale of a substantial portion of the company's stake in its Sri Lankan operations. The following table summarizes the key aspects of this divestment:

Parameter	Details
Subsidiary Name	Kansai Paints Lanka
Stake Sold	60%
Market	Sri Lankan Operations
Transaction Type	Equity Divestment

Impact on International Operations

This divestment marks a notable shift in Kansai Nerolac's international strategy, particularly in the South Asian region. The sale of the majority stake in Kansai Paints Lanka represents a significant reduction in the company's direct control over its Sri Lankan operations. The move reflects the company's strategic repositioning in international markets.

Corporate Restructuring Move

The transaction represents part of the company's broader corporate strategy regarding its subsidiary operations. By divesting 60% of its shareholding in the Sri Lankan entity, Kansai Nerolac is restructuring its international portfolio. This strategic decision may allow the company to reallocate resources and focus on other market opportunities while maintaining some presence in the Sri Lankan market through its remaining stake.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.88%	-0.92%	-10.15%	-8.57%	-14.96%	-39.90%

Kansai Nerolac Paints Limited has completed the divestment of its entire stake in its Sri Lankan operations. The company has sold its 60% equity stake in Kansai Paints Lanka (Private) Limited to Atire Private Limited, a Sri Lankan entity, for LKR 18 lakh (approximately ₹5.25 lakh).

Transaction Completion Details

The divestment has been finalized, marking a complete exit from the Sri Lankan subsidiary operations. The transaction received regulatory approval, and the agreement has been executed.

Transaction Parameter	Details
Stake Sold	60% of total equity share capital
Buyer	Atire (Private) Limited
Consideration Received	LKR 18.00 lakh (approximately ₹5.25 lakh)
Board Approval Date	December 11
Agreement Execution	December 16
Transaction Status	Completed

Financial Impact and Subsidiary Performance

The Sri Lankan subsidiary's financial contribution to the parent company was minimal. As of March 31, the subsidiary contributed LKR 2.03 crores in turnover, representing approximately 0.008% of Kansai Nerolac's consolidated turnover.

Financial Metrics	Amount
Subsidiary Turnover	LKR 2.03 crores (₹0.58 crores)
Percentage of Consolidated Turnover	0.008%
Net Worth	Negative LKR 6.44 crores (₹1.93 crores)
Sale Consideration	LKR 18.00 lakh (₹5.25 lakh)

Buyer Profile and Regulatory Compliance

Atire (Private) Limited is a group company of Anunine Holdings (Private) Limited, a leading Sri Lankan conglomerate with diversified operations in packaging, tyre manufacturing, energy, agriculture, recycling, and paper manufacturing. The transaction does not fall within related party transactions and has been completed at arm's length.

Kansai Nerolac has fulfilled all regulatory requirements under SEBI Listing Regulations, submitting detailed information as mandated under Regulation 30. Following the completion of this divestment, Kansai Paints Lanka (Private) Limited has ceased to be a subsidiary of Kansai Nerolac Paints Limited, marking the company's complete exit from Sri Lankan market operations.