The AR is out. Leaves more questions open than answer
- Company says judgment loan facility keeps company debt free? How?
- No entry of judgment finance on balance sheet, go figure how, only a loan entry from AB Capital
- Kiri Industries has taken loan from Indo Asia Copper which in turn took loan from Claronex, yes you heard that right. I thought Kiri was supposed to invest in Indo Asia Copper
- Kiri industries has given inter-corporate loans further on. Very weird, raising debt and giving loans forward like NBFC..My hunch this is routing for Warrants payment
It is easy to see why no instituions will touch this
Anyone else can figure out the puzzle
1 Like
kiri-loans.pdf (48.8 KB)
this 191 cr in consolidated balance sheet given to related parties has been routed via claronex->indo asia copper. And this is not Claronex or Indo Asia Copper as these are subsdiaries. HAd asked about this in concall, they said normal business loans but it was 0 in previous year plus it is non current means long term, the plot thickens
Have asked this from IR at Kiri, will update when i get reply
-
Loans given to related parties in Consolidated of 191 cr. See footnote in pdf attached.
There is no corresponding entries for this 191 cr in related party transactions
Can you please give details of whom this 191 cr loan has been given, by which entity and on what terms? I had asked this question in last concall too but did not get a reply
-
Why has Kiri Industries taken loan from Indo Asia Copper of 89 cr when it is supposed to be investing in Indo Asia Copper? Can u explain the reason for this money moving around?
kiri-loans.pdf (48.8 KB)
The initial investigations in AR clearly suggests that the promoters are trying to siphon off money to pay for issued warrants, which calls for further confirmation.
startupfundas - please keep us posted if you receive a reply.
Keeping everything aside the opportunity looks attractive considering that a company of marketcap 3000 crores is going to receive 5000 crores of cash. I am hoping that some of the money will be distributed to shareholders and the rest being deployed in Copper plant. Looks like limited downside opportunity with a favourable upside if Copper plant (& Die business turnaround) do come up as expected in next 5 years.
Disclaimer - 10% of portfolio invested.
1 Like
The buyer Longsheng had a major organizational change. They abolished the Supervisory Board and replaced it with the Board of Directors.
Hope this does not delay things. Or worse hope the new BoD does not change their opinion.
The release says - “The cancellation of the Supervisory Board will not have a significant adverse impact on the company’s governance,
production and operations.”
600352_20250910_FA3J (1).pdf (154.2 KB)
2 Likes
How to join the coming investor/analyst meet of Kiri, any web link ?
Just taking a wild guess. It could be due to action items for approval of funding by the china ministry
• The estimated project cost is ~INR 10,661 Cr, with INR 1,036 Cr equity already infused and the
balance secured under a 70:30 debt–equity structure, delivering an attractive ~25% projected IRR
• The Construction work has already commenced with a 36-month completion timeline commencing
from 1st October 2025
3 Likes
From AR tone, seems nov 2 more likely than Oct 2
Whether Oct 2 or Nov2, price action is showing no FII or DII interest. We retailers are not going to get any pie if no institutions are interested in this.
Dystar website pays tribute to mother of Longsheng chairman who passed away on 21 September
Please find below reply to your questions:
Loan of Rs. 191 crore was given to below related parties for business purpose.
Party Name
Amount in Crores
Chemhub Tradelink Pvt. Ltd.
80.47
Kiri Infrastructure Pvt. Ltd.
89.97
Metallonia Metals Pvt. Ltd.
20.64
Indo Asia Copper Limited provided temporary loan to Kiri Industries Limited for working capital requirements which is now repaid in current financial year .
Please find attached herewith Financial Statement of Claronex Singapore Pte. Ltd. I do not have financial of Indo Asia Copper Limited right now but will send on Monday.
Claronex-Limited Reviewed Financial FY 24-25.pdf (1.1 MB)
The one 130 million usd loan is at 15% till 31-dec-2025. And at 18% after that with bullet repayment date of 13-sep-2026
1 Like
AGM update.
Curiouser and curiouser, Kiri has bid for Dystar too, Seems they are next in line, they did not say so but seems so reading between lines. Their bid is 1.2billon as against 1.9 billion by longshen. Said copper project will go on regardless. Details of financing will be shared later if event arises, debt equity for copper plant 6000 cr : 3000 cr and first phase targetted production start April 2027
1 Like
As per Q1FY26 transcript, the second bidder was at 1.6 Bn USD so even if Kiri is bidding, it may be ranked 3rd or lower.
3 Likes
Manish here is just guessing this is not definite
Kiri bidding USD 1.2 bn for all of Dystar! Very out of the box, and also somewhat weird. I’m putting down my preliminary thoughts as they occurred to me.
Thought 1: Why bid USD 1.2 bn? Why not something like 700 mn?
Putting in a bid is a cool out-of-the-box idea. Puts pressure on Longsheng and other buyers. But a bid of USD 700 mn or so would have been so much more powerful. The first ~680 mn from any bid goes to Kiri anyway (per the Singapore court order). So out of the 700, the first 680 goes from left pocket of Kiri to right pocket. Longsheng can take the balance USD 20 mn for its 63% stake :D :D That too, Dystar has a couple of USD 100 mn cash on its books. The 20 mn can just effectively come from that :D Would have been a tight slap to Longsheng. Such a bid by Kiri may also cause Longsheng to take the process seriously, or risk getting a really raw deal. A friend suggested Kiri may have put in a 1.2 bn bid to create a floor. But the thing is - for Kiri the floor is just 680 mn or so. Any bid above that, Kiri still ends up with the same 680 mn (unless there is a generous bid of USD 2bn+). So why place a bid for 1.2 bn?
Thought 2: Perhaps Kiri does not want to burn bridges with Longsheng
Kiri does seem to have other relationships with Longsheng, and may not want to upset Longsheng by putting in a cheeky bid of something like USD 700 mn. Though Longsheng has never shown Kiri the same courtesy - has not been the best of partners, left things hanging on Dystar and really pushing this to the limit. But perhaps there is a balance of power dynamic, which may lead to Kiri not wanting to upset Longsheng.
Thought 3: Is getting Dystar at USD 1.2 bn a steal?
Does Kiri feel that getting all of Dystar at USD 1.2 bn is better than pocketing a cool USD 680 mn? My initial reaction was that getting the cash may be better. But perhaps Kiri promoters think otherwise. There could also be other reasons like setting up next gen/ family members into different businesses. It will be interesting to try and value Dystar. Does anyone have a current view on this? Will probably do this if I get time.
1 Like
That Kiri had bid for Longshen was material and could have been disclosed earlier but maybe they did not want it to be disclosed earlier
This shows 1000 cr infused in Indo Asia Copper (330 cr in land, wondering whom they bought it from since EC application very old on same land), 300 crs loan to promoters and related parties, 350 cr in investments (free cash), rest miscellaneous) No Capital WIP or plant and machinery yet as on 31-Mar-2025
IACL_FS 2025.pdf (2.0 MB)
1 Like
fb86af94-be33-43ab-a4b2-6e54b611207b.pdf (296.6 KB)
Spanner in the works. Not looking good at all
Longsheng posted an update
Jin submitted its filing application documents to the National
Development and Reform Commission and the Ministry of Commerce. As of
now Both of the above-mentioned filing procedures have not yet been
completed.
According to the sales agreement, the deposit paid at this time will
be forfeited and used to pay for DyStar’s litigation.
the company needs to transfer additional funds to the escrow account
within 10 working days after November 3rd, 2025.
The amount is US$5,112,156; the parties will subsequently sign a
supplementary agreement to stipulate the above matters in writing.
Currently, the company is actively advancing the relevant work for
this transaction, striving to complete it as soon as possible in line
with national development and…The necessary filing procedures with
the Reform Commission and the Commerce Department are required for
this asset purchase.
1 Like
