Huasheng Co. Ltd, a unit of Chinese dyestuff manufacturer Zhejiang Longsheng Group, has acquired 7.46% equity stake in Kiri Dyes and Chemicals Ltd (KDCL), one of country’s leading manufacturer and exporters of dyes and dyes intermediates.
Huasheng has purchased 1.1 million shares in Kiri at Rs 115 per share.
KDCL has recently closed its initial public offering of 37.5 lakh equity shares of face value of Rs 10 each.
Ahmedabad-based, Kiri Dyes, one of the top 10 producers of reactive dyes globally in terms of volume and quality, is an Ahmedabad based company. The company has been in the business of manufacturing Reactive Dyes for past 9 years. The product range of company caters to textiles, leather, paint and printing-ink industries.
The Company sells its products to customers across various countries including Korea, Turkey, Indonesia, Taiwan, U.S.A, Canada, and other European countries apart from domestic sales.
KDCL plans to raise funds for executing its backward integration project for manufacturing three key raw materials for dye intermediates.
Last month, KDCL and Zhejiang Lonsen Group have inked a memorandum with an initial investment of US$ 10million in 60:40 ratio for the setup of a manufacturing unit at Vadodara in Gujarat for production of reactive dyes.
Source: Stockwatch