Outcome of the Board Meeting in terms of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dilution and Divestment of equity stake in APAG Holding AG, a material subsidiary company
KANORICHEM · price
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Kanoria Chemicals & Industries (KCIL) will dilute its 55% stake in Swiss subsidiary APAG Holding AG to about 14.3% in a first tranche by September 2025, after which APAG will cease to be a subsidiary. New investors Anevolve Private Limited and Asia Investments UK Private Limited (AIPL), who are not related to the promoter group, will invest USD 19.38 million (~EUR 17.78 million) directly into APAG to acquire about 63% of its equity. KCIL will also convert a loan of about EUR 2.64 million into APAG equity. In a second tranche in FY 2029-30, KCIL will transfer its remaining 14.3% holding to the same investors at a valuation to be agreed later. APAG contributed around 50% of KCIL's consolidated revenue (INR 7,770 million) in the last financial year.
This is a major restructuring — KCIL is exiting a subsidiary that drove roughly half of its consolidated revenue, meaning the consolidated business will shrink significantly post the first tranche. Shareholders do not receive any cash in the immediate dilution, and the value of the second tranche sale in FY 2029-30 is still to be determined.