Kiri Industries has formally rejected a new proposal from receivers concerning its stake in DyStar, marking a significant development in the ongoing negotiations. The chemical company has expressed serious concerns regarding the financial implications and uncertainty surrounding the proposed deal structure.

Rejection of Receivers' Proposal

Kiri Industries has cited specific concerns over cash flow requirements and the overall uncertainty associated with the receivers' latest proposal for the DyStar stake. This rejection represents a clear stance by the company against the current terms being offered by the receivers.

Opposition to Deadline Extension

Kiri Industries has also taken a firm position against extending the current deadline to March 2026. The company believes that the proposed timeline extension would not serve its interests or resolve the underlying concerns with the deal structure.

Court Appeal for Alternative Bidders

In a strategic move, Kiri Industries has formally requested the Singapore Court to consider offering the deal to other potential bidders. This request suggests that the company believes alternative proposals might better address its concerns and provide more favorable terms.

Company's Strategic Position

The rejection and court request indicate Kiri Industries' commitment to securing a more suitable arrangement for its DyStar stake. Key aspects of the company's position include:

• Rejection of current receiver proposal due to cash concerns
• Opposition to March 2026 deadline extension
• Request for court to explore alternative bidders
• Focus on reducing deal uncertainty

This development in the DyStar stake negotiations demonstrates Kiri Industries' proactive approach to protecting its interests while seeking more favorable deal terms through the Singapore Court system.

Kiri Industries Limited has submitted a monitoring agency report from CRISIL Ratings, detailing the utilization of proceeds from its recent preferential issue of convertible warrants. The report, covering the quarter ended September 30, 2025, provides insights into how the company has allocated the funds raised.

Preferential Issue Details

Kiri Industries conducted a preferential issue from September 27 to October 15, 2024, raising a total of Rs 492.02 crores. Out of this, the company has received Rs 398.88 crores to date.

Fund Utilization

The company has utilized Rs 396.25 crores of the received funds across five key objectives:

Remaining Funds

The balance of Rs 2.63 crores from the received funds is currently held in fixed deposits.

Future Proceeds

An additional Rs 93.14 crores is expected from warrant holders, who have 18 months from the allotment date to convert their warrants into equity shares.

Monitoring Agency Assessment

CRISIL Ratings, acting as the monitoring agency, reported no deviations from the disclosed objectives for fund utilization. This indicates that Kiri Industries is adhering to its stated plans for the preferential issue proceeds.

Implications

The strategic allocation of funds across various objectives suggests that Kiri Industries is focusing on strengthening its financial position, managing working capital, addressing legal matters, and supporting group companies. The substantial allocation towards debt repayment and working capital requirements, in particular, may indicate efforts to improve the company's operational efficiency and financial flexibility.

Investors and stakeholders may view this transparent reporting positively, as it demonstrates the company's commitment to utilizing the raised funds in line with its stated objectives.