₹3,700 Cr Market cap: Stock Jumps 20% After Receiving ₹6,200 Cr from DyStar Stake Sale

Synopsis: Kiri Industries jumped sharply after finally receiving Rs 6,200 crore from the sale of its 37.57% DyStar stake, ending its decade-old legal fight. With that cash in hand, the company earlier shared how it intends to utilise these proceeds.

The shares of this textile company, engaged in the business of manufacturing and exporting a wide range of Dyes, Dye Intermediates, and Basic Chemicals from India, are in focus after it finally received its money for its 37.57 percent held in its offshore company that was stuck in trials for years. In this article, we will delve further into the details.

With a market capitalization of Rs 3,967 crore, the shares of Kiri Industries Ltd. made a day high of Rs 734.95 per share, up 20 percent from its previous day’s closing price of Rs 613.30 per share. Over the past five years, the stock has delivered a poor return of 37 percent, outperforming NIFTY 50’s return of 85 percent.

On December 31, 2025, Kiri Industries, through a stock exchange filling announced that it had closed the books on a decade-long legal fight in Singapore by receiving a final payment of $689 million (over Rs 6,200 crore) for its 37.57 percent stake in DyStar. With this, both the Share Purchase Agreement and Share Buy-Back Agreement stand fulfilled, DyStar is officially out of Kiri’s business.

But this isn’t just about finally getting paid. This deal stands out as one of the strongest wins ever for a minority shareholder, and it completely transforms Kiri’s balance sheet and opens up a new strategic chapter.

History of the Incident

DyStar’s story dates back to July 1, 1995, when Hoechst AG and Bayer AG joined forces, pooling their textile dye know-how. BASF’s textile dyes business joined in 2000, along with ICI/Zeneca Dyes and Mitsui, making DyStar a heavyweight in the textile coloration world.

Fast forward to 2010: Kiri Industries and Zhejiang Longsheng Group bought DyStar, with Kiri taking 37.57 percent and Longsheng 62.43 percent. That deal brought Indian ownership into the picture. Today, DyStar runs 16 production plants across over 50 countries, employs around 1,700 people, and claims a significant share in the global textile dyes market. 

Back in 2015, Kiri Industries (primarily a dyes and chemicals maker) filed a case against the majority shareholder group led by Zhejiang Longsheng / Senda, accusing it of minority oppression, basically, unfairly squeezing Kiri out of DyStar’s operations. At that point, Kiri held 37.57 percent and Senda had the rest.

In March 2023, the Singapore International Commercial Court (SICC) valued Kiri’s stake at $603.8 million. But Senda didn’t follow through with the court-ordered buyout. That forced the court’s hand; they ordered DyStar to be sold off as a whole, through a competitive court-supervised bidding process. Whoever bid highest would win, and Kiri would receive its $603.8 million before Senda saw a single dollar.

That open auction changed the game. Zhejiang Longsheng, already the majority owner, bid for the rest and ended up paying well above the minimum. The final price: $676.26 million base, plus $20.29 million extra, totaling $696.55 million. After some adjustments, Kiri walked away with $689 million, which is more than the original court-mandated price, all thanks to the pressure of open competition.

So how does the company intend to use these proceeds?

Now with a pile of cash, Kiri plans to branch out beyond dyes. The company is looking at renewable energy, electric vehicles, infrastructure, and fertilizers, industries with long-term growth potential.

They’re approaching this in two phases. In Phase 1, Kiri will invest roughly Rs 2,400 crore to build facilities for copper rods, cathodes, and coils, critical components for EVs, power grids, and renewables, with a planned capacity of 200,000 tonnes. Phase 2 will see another Rs 4,000–5,000 crore invested to push copper output to 300,000 tonnes and kick off fertilizer production with a 900,000-tonne capacity.

Once both phases start, Kiri expects these new ventures to pull in about Rs 40,000-45,000 crore in revenue based on the current prices of copper and Rs 3,000 crore in profit after tax. It’s a bold move, turning the DyStar windfall into a foundation for long-term growth.

In conclusion, Kiri Industries pulled off something big; they wrapped up a long legal fight and walked away with more than even the court thought they’d get. With over Rs 6,200 crore now in hand, the company suddenly has choices it never had before. Still, this win isn’t the finish line. What really matters now is how they handle the copper project in the next few years. That’s where shareholders will either see real gains or watch this windfall slip away.

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