Kiri Industries Limited has announced board approval for a substantial investment of up to USD 168 million in its wholly owned Singapore subsidiary, marking a significant step in the company's international expansion strategy. The board meeting held on January 3, 2025, approved this strategic investment in Claronex Holdings Pte. Ltd.

Investment Details and Structure

The investment will be executed through cash consideration, with equity shares issued at SGD 7.00 per share. The total investment amount of USD 168 million is approximately equivalent to ₹1,500 crores. Despite this substantial investment, Kiri Industries will maintain its 100% ownership in Claronex Holdings, ensuring no change in shareholding percentage.

About Claronex Holdings

Claronex Holdings Pte. Ltd. was incorporated in Singapore on February 14, 2024, under the Companies Act, 1967. The subsidiary currently has a paid-up share capital of USD 15,115 and operates in wholesale trading of various goods along with investment and financing activities. However, the company has not yet commenced its business operations.

Strategic Objectives

The primary purpose of this investment is to enable the repayment of Claronex Holdings' entire credit facility of USD 130 million along with applicable interest, making the subsidiary completely debt-free. Additionally, the investment will facilitate the commencement of the subsidiary's business operations in trading activities.

Key objectives include:

• Complete repayment of USD 130 million credit facility
• Elimination of all existing debt obligations
• Facilitation of trading business operations
• Strengthening the subsidiary's financial position

Related Party Transaction Compliance

As Claronex Holdings is a wholly owned subsidiary, this investment constitutes a related party transaction under applicable regulations. The company has confirmed that the investment will be undertaken on an arm's length basis. Mr. Manish Kiri, Chairman and Managing Director of Kiri Industries, serves as a Director on Claronex's board. No other promoters, promoter group members, or group companies have any financial interest in this investment.

Regulatory and Completion Timeline

The investment does not require any governmental or regulatory approvals, streamlining the execution process. The company expects to complete the proposed investment within six months from the approval date. This timeline allows for proper structuring and execution of the equity share issuance process.

This strategic investment demonstrates Kiri Industries' commitment to strengthening its international presence through its Singapore subsidiary while maintaining operational flexibility in global markets.

Kiri Industries has received $689.03 million from the sale of its stake in DyStar, marking a significant divestment transaction for the chemicals company.

Transaction Details

The sale represents a major strategic move for the company, with the substantial proceeds potentially strengthening Kiri Industries' financial position. The transaction involves the divestment of the company's stake in DyStar, generating considerable value for shareholders.

Strategic Impact

This divestment represents a significant realignment of Kiri Industries' business portfolio. The substantial proceeds from the DyStar stake sale provide the company with enhanced financial flexibility and resources for future strategic initiatives.

The transaction demonstrates Kiri Industries' ability to unlock value from its investments and optimize its asset portfolio. The sale proceeds could be utilized for debt reduction, business expansion, or other strategic investments aligned with the company's long-term objectives.