KiRi windfall certainty makes it a special situation case
With the final appeal against SICC order overwhelmingly in its favour and the Dystar enbloc sale well underway, we can guesstimate that by the first half of this year Kiri is set to receive approximely Rs. 5500 crores gross against this long corporate battle against Senda for being subjected to minor shareholder cruelty in Dystar ...
This amount is higher than the present market cap of the company. However, the ambitious plans of the promoter of Kiri entails putting bulk of the proceeds from the Dystar sale into a greenfield copper plant which would also have fertilizer as a byproduct for which the Environment Impact Assessment report has been received by its wholly owned subsidiary Indo Asia Copper Ltd. The 1st phase being built will have 2 lakh tonnes capacity of the total 5 lakh capacity per annum.
It has already secured litigation finance of 130 million USD against its receivables in the Dystar case which is being used entirey for building the 1st phase. It has also done very large prefferential allotment of 490 crores to promoters of which approx 50% has been paid and converted into shares.
Suffice to say, the company is evolving from a small cap to a mid cap with this transition. It will involve a lot of trust from the investors and lately, seeing its impulsive rise from 330 to 700 twitter is ful of doubting thomases and naysayers of this current plan of Kiri. Some of them were probably shareholders who jumped the gun too earlyon the judgement when it was in lower courts and a few are armchair economists.
However, it is not a small thing to pursue an International Court case in SIngapore and win it and also get the judgement enacted. This case has gone up from arbitration to high court to commercial court and the appeal thereon so the merits of the same and that too in the financial capital of the Asia where the rule of law is supreme,the promoters of Kiri have come out victorious, but bruised due to the number of years that it has dragged on.
It is a fact now that Dystar is being sold and receivers have been appointed since August last year for the same. The management is expecting execution documents to be signed as early as march of 2025. The minority shareholders on Kiri now have to be pro-active and ask the right questions to the management and the promoters during conference calls and demand exemplary fiduciary responsibility of them to all the equity shareholders of the company.
We dont have a gold mine of an opportunity here, but a copper mine at the least!
This amount is higher than the present market cap of the company. However, the ambitious plans of the promoter of Kiri entails putting bulk of the proceeds from the Dystar sale into a greenfield copper plant which would also have fertilizer as a byproduct for which the Environment Impact Assessment report has been received by its wholly owned subsidiary Indo Asia Copper Ltd. The 1st phase being built will have 2 lakh tonnes capacity of the total 5 lakh capacity per annum.
It has already secured litigation finance of 130 million USD against its receivables in the Dystar case which is being used entirey for building the 1st phase. It has also done very large prefferential allotment of 490 crores to promoters of which approx 50% has been paid and converted into shares.
Suffice to say, the company is evolving from a small cap to a mid cap with this transition. It will involve a lot of trust from the investors and lately, seeing its impulsive rise from 330 to 700 twitter is ful of doubting thomases and naysayers of this current plan of Kiri. Some of them were probably shareholders who jumped the gun too earlyon the judgement when it was in lower courts and a few are armchair economists.
However, it is not a small thing to pursue an International Court case in SIngapore and win it and also get the judgement enacted. This case has gone up from arbitration to high court to commercial court and the appeal thereon so the merits of the same and that too in the financial capital of the Asia where the rule of law is supreme,the promoters of Kiri have come out victorious, but bruised due to the number of years that it has dragged on.
It is a fact now that Dystar is being sold and receivers have been appointed since August last year for the same. The management is expecting execution documents to be signed as early as march of 2025. The minority shareholders on Kiri now have to be pro-active and ask the right questions to the management and the promoters during conference calls and demand exemplary fiduciary responsibility of them to all the equity shareholders of the company.
We dont have a gold mine of an opportunity here, but a copper mine at the least!
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.