Shares of Kiri Industries Ltd crashed 11% on 30 May after the company signed a Share Purchase Agreement (SPA) with Zhejiang Longsheng Group to sell its 37.57% stake in DyStar for a base price of $676.26 million.

At the current currency rate, this amount is around Rs 5,765 crore, which is larger than the company’s current market capitalization of around Rs 3,800 crore.

Furthermore, Kiri Industries stated that the purchaser might pay an additional $20.29 million to address any deficit in the base payment or to meet the purchaser’s responsibilities under the SPA.

According to the terms of the agreement, Zhejiang Longsheng Group would buy 26.23 lakh equity shares, accounting for 37.57% of DyStar’s paid-up share capital held by Kiri Industries.

The entire consideration may be subject to additional adjustment under the SPA. The deal remains subject to customary closing conditions and, where applicable, regulatory approvals, according to the business filing.

At 12:03 pm, the shares of Kiri Industries were trading 8.61% lower at Rs 664 on NSE.

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