Kolkata, January 28, 2025 – Kanoria Chemicals & Industries Limited (NSE: KANORICHEM, BSE: 506525) has announced the sale of 8,684,325 equity shares (13.79% stake) in Kanoria Africa Textiles Plc. to Hyperlabs Pte. Ltd., Singapore, for $2 million. Despite the stake sale, Kanoria Africa Textiles will remain a subsidiary of Kanoria Chemicals.
Transaction Details
- Company Sold: Kanoria Africa Textiles Plc.
- Buyer: Hyperlabs Pte. Ltd., Singapore.
- Stake Sold: 13.79% (8,684,325 equity shares).
- Transaction Value: $2 million.
- Post-Transaction Shareholding: 86.21% retained by Kanoria Chemicals.
- Expected Completion: By April 2025.
Financial Impact
- Kanoria Africa Textiles’ Contribution to Group Revenue:
- Total Income: ₹1,085 million (7.25% of group revenue).
- Net Worth: ₹967.34 million (11.41% of group net worth).
- Cash Proceeds: To be received on or before transaction completion.
Strategic Rationale
- Portfolio Optimization: The sale allows Kanoria Chemicals to streamline its asset portfolio while maintaining a controlling stake.
- Liquidity Enhancement: The proceeds can be used for strategic reinvestment and operational efficiency improvements.
- No Related-Party Involvement: The transaction does not involve promoter-related entities, ensuring transparency.
Regulatory & Compliance Considerations
- The sale is outside any merger or scheme of arrangement, complying with Regulation 37A of SEBI LODR Regulations.
- No regulatory approvals were required for the transaction.