My source is the investor relations team of Kiri Industries. I have shared the email ID here earlier. You had stated earlier that they dont bother to reply to which I informed that they have done so in my case. I suggest to everyone who is a shareholder in Kiri to write and ask them pointed questions to let them know that their actions are being followed very closely by the minority investors.
Further, if one is inclined, one can actually see whether there is any hustle bustle in the copper plant site. Both the communication which form the grounds for the removal of the director and the 4 month old site footage makes me come to the same conclusion, i.e., work has not taken off at the copper plant site. Some boundary wall construction may have taken place, thats it.
I have a small stake in the company. Before scaling up I wanted to be thorough and therefore I tried with whatever resources I have at my hand. The foreign currency loan, which has been taken at approx 15% interest, the interest cost meter has been running now 8 to 9 months and no tangible progress to which end this loan was obtained. Therefore I do not see them using the resources efficiently.
Also, Kutch Copper, another copper smelter which is an Adani Enterprise subsidiary located at Mundra, is 450 km from IACL plant site. The total planned capacity of Kutch Copper is 1 million tonnes of which 50% has been installed and is operational.
While based on its present marketcap and the amount to be received from Dystar there may be a margin of comfort but I feel we need to monitor now everclosely since they have not yet utilized the loan funds for the end purpose to which it was obtained and disclosed to us in the earlier conference calls. Delays do happen in greenfield implementation,in this case, it has happened due to easily avoidable reasons, which is, as per the companys rebuttal to the director being fired, due to management inefficiency. Rest we can come to our own conclusions regarding our investment here..
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INDO ASIA COPPER LIMITED[1].pdf (291.0 KB)
MCA master data attached above as of today shows that Dr. Sarkar is still a director.
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Fair Enough. We all have criteria on which to evaluate companies and management competence is one of them. As long as you find them competent, one risk can be removed.
Would recommend you to go through concalls of Hindalco that have copper as small percentage of their portfolio and figure out how tough the business is for even someone experienced for decades in that line.
Look at TC/RC of Copper right now. It is negative despite it being most important commodity right now for electrification and EV.
And frankly, fertilizer is a commodity business that is extremely tough to make money in. Your fertilizers business is a subsidized business and you need to learn to navigate that field.
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I think the price drop from a high of 740 to 540 has rattled most of us. I for one did not see this coming. Production 3 year out is very hard to bet on that too in commodity business
My play here is and was money actually coming rerating, dyes biz improving mainly. Copper plant was an optionality. To each his own investment thesis i guess. All the best
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These are queries I has asked and Ad Valorem answered over a call:
I have the following queries:
- As of 31.03.2025 you have loans of 193 cr on your consolidated balance sheet, Can you let us know to whom these loans have been given
Clearly it cannot include loans given to subsidiaries. So which external parties have these loans been given to?
—> Loans given as normal course of business, no more details shared
- Borrowings on the balance sheet stands at 1114 cr approx. How have we incurred a finance cost of 54 cr on the same? This seems really high?
Can you throw some light on the rates at which we borrowed. Also is this 54 cr expected to continue for the coming quarters till the Dystar money comes in?
-----> Just said will be repaid from Dystar proceeds, Rates not provided
- Also plant and CWIP in consolidated balance sheet has not been separated into dyes and copper plant biz, can you please throw some light.
Segmental breakdown may please be provided going forward so one knows where the capital is being allocated as now copper is a big part of the business
at least as far as capital allocation goes
—> Will tell management, no plans as of now to disclose separately
- What kind of capital has been infused into copper subsidiary in the form of debt or equity. Some details would be really helpful.
----> No details provided. Just in investing stage
Anyone investing on cooper plant thesis needs to watch out. Asking for subsidairy accounts when Annual report comes out will be important to understand money deployed in Indo Asia
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On the last day of Jan’25, one of the things the Singapore Supreme Court did was award 5.33% p.a. interest to Kiri on the Dystar payout until payment was received by Kiri. As you point out, this would translate to some USD 2.5/month. At that time, in front of the ~USD 600 mn expected payout, I saw this as a nice cherry-on-top. But for me, it was never the main act and only a small side-show.
Just around 4 months later, in the first week of June’25, Longsheng Group agreed to pick up Kiri’s stake in Dystar at the valuation fixed by the Singapore Supreme Court.
In hindsight (only in June, some weeks after Longsheng agreed to pick up the stake) did I realize that the point you made - the meter running up a charge of USD 2.5 mn for every month of delay - was actually quite a strong catalyst. I thought it was a side-show, a cherry-on-top, but it was much more than that. It really incentivized Longsheng to not create further obstacles, in fact even to help accelerate things. And Longsheng actually did help accelerate by offering to buy Kiri’s stake themselves - which they could have done 10 years ago!
Even today, as we wait patiently for Pay-day, I keep coming back to this interest catalyst/ incentive structure. It gives me hope and strength to endure the long (though the date is quite near now, it feels looooooong) wait.
Best of luck to all Kiri shareholders.
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To all investor over here. How do you see no new addition of DII, FII in last qtr ? Even a FII fund who was in it since 2017 has left, India opportunities growth fund.
We are seeing opportunity why not others ? Why no new HNI entry ? This news of 5000 cr after tax proceeds by Oct. 25 is open for all. Why no interest in Kiri industries by big market participants ?
Kindly share your views.
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In January 2013, Kiri issued 150 FCCBs worth USD 15 million (INR ₹82 cr approx.) convertible into equity at ₹12.03/share (based on fixed exchange rate) .
This potentially represented 6.84 crore equity shares, which was over 3× the total shares outstanding at that time—a severe dilution risk .
- FCCB Restructuring (2016)
In March 2016, the company restructured terms reducing outstanding bonds from 150 to 82 bonds, extending maturity to 2022.
Maximum possible dilution fell significantly to ~2.23 crore shares, bringing total fully diluted capital to ~4.83 crore shares .
So fii has been selling as their acquisition cost is 12 rs that is the major overhang on the share.
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Thank you Shrinivas ji for inputs. Had no idea of such past. May be they are selling as of uncertainties existing so they thought better to exit.
How do you see the current situation in Kiri industries ? With 5000 cr after tax money, how much rerate it could be because copper plant is quite far it seems.
Mr Manish kiri is quite active as i see two reports where one he was meeting with Orissa CM and in one he was in PM business delegation team as of Brazil visit.
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Did some research.
The number of outstanding bonds was reduced from 150 to 82.
Maturity on the remaining FCCBs was extended from 2018 to 2022.The maturity date for Kiri’s FCCBs was January 17, 2022.
The management, through negotiation, reduced the number of outstanding FCCBs, thus cutting the maximum possible dilution by about two-thirds (from 6.84 crore to 2.23 crore shares).
So it means current equity is diluted as of those bonds.
Two fund Vikasa funds and Cresta funds acquired by March 2022. Rest are all after that. So primarily possible that they might have acquired through this restructuring and they would shift hands if price rises as their buying is quite cheap.
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October 2024: Board approved issuance of 13,333,789 warrants at ₹369 each (totaling INR 492 crore) to promoters/promoter group on preferential basis .
Each warrant convertible into one equity share within 18 months (i.e., by ~May 2026) .
Promoters paid ₹188 per warrant upfront (~51%), with the balance ₹181 due upon conversion .
The promoter has plegded everything and has to declare a dividend before may 2026.
Deloitte has a deadline of dec 31 2025 to sell dystar
If u can hold till then or may be before that also promoter is confident of receiving money.
Promoter has to declare dividend of 500 cr for his holding before may
Study fii holding since 2022 of kiri
Ji Shrinivas ji, studying more after your insights.
Could you please clarify two things ?
First Promoter in concalls say no pledging is there.
So is he lying on that ?
Secondly , could you elaborate this line “Promoter has to declare dividend of 500 cr for his holding before may”.
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Also please if you can guide from what angles do we need to study Fii holdings. I noticed few of them are singapore based or related to Singapore in some ways.. what else do we need to say. I have tried to find how big those funds are but didnt get much info, just that few FII have some singapore relation.
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Promoter pledging was not there before warrent issue. To pay for warrents promoter has pledged. To release the pledge he will declare a dividend
Fii holding has come to from 45 to 23
They have been continuously sell whenever the stock rises around 700
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@Shail1234 There is no pledge. It is encumbrance. There is a difference between both the terms but often misunderstood and the term pledge is used unknowingly. Do check out the difference. I have posted about this earlier also.
@Shrinivas_R_Kashyap please share if any evidence is available. Do check if the FII holding percentage reduction is in line with the dilution that happened due to issuance of warrants.
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Thank you Shrenik bhura ji for clarifying.
But there is selling by Fii at many junctures. This FII fund named India opportunities growth fund, who was in Kiri since 2017 has left as i check latest shareholding pattern of June 2025. 2.02 % equity sold at this crucial juncture. Nseindia website i checked.
Now 3 major FII funds remains.
GRIFFIN GROWTH FUND VCC
VIKASA INDIA EIF I FUND
CRESTA FUND LTD
These funds name entered in 2022, when those FCCB were matured.
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The promoter pledge is now close to zero from 78 percent in last quarter. Based on 31.7 % holding in company, that comes to almost a payment of hundreds of crores to release the pledge. Wondering where that much amount came from?
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Promoter’s reasons attached - why CEO Sarkar was let go from Indo Asia Copper.
MGT-14_Optional attachments if any_07_07_2025.pdf (2.8 MB)
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@Swaroop_NS Thank you. Is this from the MCA filings? This one does seem from the MCA filings.
My opinion after having read it fully -
A costly mistake indeed by the top management. They admittedly had been sensing the smoke for quite sometime but failed to spot the fire early enough. This is one side of the story which I would like to believe completely and hope it is not another stretched legal battle for Kiri, that they so much seem to be accustomed to.
As a shareholder, the sore part is the “expensive” delay of the copper project which is the most strategic and critical (and of national importance) reason behind my investment thesis and may be for others too, given that the receipt of the disputed gains related to Dystar seem to be mostly secured. Small operational delays are all acceptable and part of the game in such a massive project. But the blame for this once exposes the chinks in armour of the top rung. They owe an explanation as to what compelled them to let this leaky tap go unnoticed for so long and even while they were being questioned in the concalls about the progress of the IACL project and the need for the IACL team to be present.
The top management doesn’t seem to have a culture of responsible, transparent and timely disclosures and the same came to bite them back in the form of the alleged actions and mannerisms of Mr. Sarkar. As per the LinkedIn posts and employee details related to Indo Asia, they seem to have made some progress in the last few months. But nothing can be said for sure unless the company commits itself to timely and transparent disclosures. Good or bad, thick or thin, we the shareholders have been with them patiently. It is their duty to reciprocate.
The share is already at the lows. This filing explains it all.
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