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.

Kiri Industries has received the full consideration of US$689.03 million (approximately ₹5,862 crores) following the en bloc sale of its entire 37.57% stake in DyStar Global Holdings, successfully concluding a decade-long legal dispute that began in 2015. The company confirmed that all agreements have been formally discharged and DyStar has ceased to be an associate company.

Transaction Completion and Legal Resolution

The divestment was completed through a court-supervised process managed by Singapore International Commercial Court (SICC) appointed receivers from Deloitte & Touche LLP. The formal discharge notification was received from the receivers' counsel on December 31, 2025, marking the official completion of all contractual obligations.

Decade-Long Legal Journey

The DyStar proceedings were initiated by Kiri Industries in 2015 to protect its rights as a minority shareholder. The matter progressed through multiple stages of litigation and appeals, ultimately confirming minority oppression on multiple counts. The court-directed valuation resulted in awards of interest, recovery of costs, and an order for the en bloc sale of DyStar.

Management Commentary and Strategic Impact

Commenting on the development, Mr. Manish Kiri, Chairman and Managing Director, stated: "This marks the successful conclusion of a long and complex legal journey that began in 2015. While the process required significant time and legal expenditure, our priority throughout was to safeguard shareholder interests and secure a fair economic outcome."

Regulatory Compliance and Future Outlook

Kiri Industries confirmed full compliance with SEBI regulations and obtained shareholders' approval through a Special Resolution in an Extraordinary General Meeting held on July 31, 2024. The company acknowledged the Singapore judicial system and SICC for fair adjudication, while expressing appreciation for Allen & Gledhill LLP's legal representation throughout the proceedings.

The resolution of the DyStar matter is expected to materially reduce ongoing legal expenses and enable management to focus on core businesses, diversification initiatives, and long-term growth strategy. With the full proceeds now received, the company is positioned to strengthen its balance sheet and deploy capital towards future growth opportunities.