Kesoram Industries Limited is the subject of an open offer by Frontier Warehousing Limited, with the tendering period officially commencing on February 26, 2026. The offer represents a significant corporate development in the Indian industrial sector, with comprehensive regulatory compliance and transparent pricing mechanisms.

Open Offer Structure and Pricing

Frontier Warehousing Limited is acquiring up to 8,07,72,600 fully paid-up equity shares of ₹10 each at ₹5.48 per equity share, representing 26.00% of the voting share capital. The offer follows a structured timeline with key regulatory milestones already completed.

Independent Directors' Recommendation

The Committee of Independent Directors has issued a favorable recommendation on the offer. The IDC considers the offer price fair and reasonable, based on regulatory compliance and comparative analysis. The recommendation highlights that the ₹5.48 offer price exceeds the negotiated acquisition price of ₹4.00 per equity share and equals the volume-weighted average market price during the 60 trading days preceding the public announcement.

Financial Position of Key Entities

Frontier Warehousing Limited demonstrates strong financial capacity to execute the acquisition. The acquirer operates 19 lakh square feet of warehouse space and maintains diversified business interests across storage, logistics, and industrial development.

Shareholding and Compliance Framework

The acquirer maintains a promoter-driven shareholding structure with 83.93% promoter holding and 16.07% public shareholding. The target company demonstrates regulatory compliance with stock exchanges, with only minor historical penalties addressed. The offer includes comprehensive mechanisms for both physical and dematerialized share tendering through registered stockbrokers.

Participation and Settlement Process

Public shareholders can participate through stock exchange mechanisms during normal trading hours. The offer provides detailed procedures for both physical and dematerialized shareholdings, with specific documentation requirements and settlement timelines extending to March 30, 2026 for final consideration payment and share transfers.

Kesoram Industries Limited announced its unaudited financial results for the quarter ended December 31, 2025, demonstrating a remarkable turnaround in standalone performance while maintaining steady consolidated operations. The company's board meeting held on January 16, 2026, approved both standalone and consolidated financial results under Regulation 33 of SEBI listing obligations.

Standalone Financial Performance

The company's standalone operations showed significant improvement during Q3 FY26. Key financial metrics reflected a strong recovery from the previous year's losses.

The standalone revenue surge was primarily driven by improved operational performance, with total expenses remaining controlled at ₹3.56 crore compared to ₹5.07 crore in the corresponding quarter of the previous year.

Consolidated Financial Results

On a consolidated basis, the company maintained relatively stable performance with marginal revenue decline but achieved profitability.

The consolidated results benefited significantly from higher other income of ₹34.02 crore compared to ₹0.94 crore in Q3 FY25, contributing to the overall positive performance despite slightly lower operational revenue.

Nine-Month Performance Overview

For the nine-month period ended December 31, 2025, the company faced challenges on both standalone and consolidated fronts. Standalone operations reported a net loss of ₹209.14 crore compared to ₹207.02 crore loss in the corresponding period of the previous year. Consolidated operations showed a net loss of ₹119.19 crore versus ₹200.46 crore loss in the previous year, indicating improvement in consolidated performance.

Corporate Developments

The company announced the constitution of an Independent Director Committee (IDC) to provide recommendations to shareholders regarding an open offer made by an acquirer under SEBI (SAST) Regulations, 2011. According to the notes, certain promoter group members entered into a Share Purchase Agreement dated December 4, 2025, with Frontier Warehousing Limited to sell 13,29,69,279 equity shares representing 42.80% of the share capital.

Operational Highlights

Following the demerger of the cement division in the previous year, the group now operates with a single reportable segment comprising Rayon, Transparent Paper and Chemicals. The company's paid-up equity share capital remained stable at ₹310.66 crore with a face value of ₹10 per share. The financial results were subject to limited review by statutory auditors Walker Chandiok & Co LLP, who expressed an unmodified opinion on the unaudited financial statements.