Kiri Industries, who is engaged in a stake valuation case with Dystar, a leading dyestuff & chemical manufacturer and solution provider, came with an update about the same today. The judgment regarding the same case will be heard on the 3rd of March, 2023.
On the news, the company’s stock opened today at Rs 277, and with some shake in the prices during the first couple of hours, the stock hit the upper circuit at a price of Rs 304.80.
Kiri Industries Limited (KIL) is one of the largest manufacturers and exporters of a wide range of Dyes, Intermediates, and Chemicals from India. The company is a preferred resource center for many of the most extensive product lines in textile dyes. The is an accredited and certified Key Business Partner with the world’s top Dyestuff majors across Asia-Pacific, the EU, and America.
The company, on the 8th of February, 2023, announced that the Singapore International Commercial Court (SICC) has delivered the judgment with respect to the valuation of the Company’s stake in DyStar, which they acquired in February 2010.
The SICC had decided on a computation base of 53,550 tonnes annually to be considered for the computation of patent license fees. This decision substantially increased the number of patent license fees to be added to the valuation of the company’s stake in DyStar.
As a result of the same, the SICC had further intimated both the parties to submit their revised agreed calculation within 21 days in connection with the notional license fees based on 53,550 tonnes for the Related Products and the valuation of Company’s shareholding in Dystar based on the notional license fee, after adjusting for the fact that discount for lack of marketability is not a relevant adjustment as was founded by the Court of Appeal.
The small-cap stock has a market capitalization of Rs 1,579 Crore. Further, the FIIs have shown faith by holding a 48.34 percent stake in the company while the promoters hold a 26.72 percent stake.
Written by Amit Madnani
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