Frontier Warehousing’s entry follows a share purchase agreement that will see the company buy 13,29,69,279 shares from Birla-controlled promoter group entities at Rs 4 apiece. The deal, worth about Rs 53 crore, represents 42.8% of Kesoram’s voting share capital and marks the end of Birla ownership. The exit comes months after UltraTech Cement absorbed Kesoram’s cement division through a 1:52 share swap. The demerger became effective on March 1, 2025, under a composite scheme dated April 1, 2024, leaving Kesoram with its non-cement operations.
Post-demerger, Kesoram has no standalone manufacturing activity. Its operations run through its wholly owned subsidiary, Cygnet Industries, which houses the rayon, transparent paper and chemicals businesses. The spun pipes and foundries unit at Bansberia in Hooghly remains permanently closed or under suspension, while the rayon plant, also in Hooghly district, continues to operate under Cygnet.
Financially, the company remains under strain. Kesoram reported a consolidated net loss of Rs 25.87 crore for the September quarter of FY25, narrower than the Rs 69.92 crore loss in the same quarter last year. Revenue, however, declined 6.03% year-on-year to Rs 55.17 crore, reflecting the company’s smaller operations after the cement carve-out.
Frontier Warehousing, an unlisted logistics and storage solutions provider, has now become the new controlling shareholder, setting up a fresh ownership.
BSE data from the Q2 shareholding pattern shows that public shareholders together own a little over 16% of the company. Among institutional holders, ICICI Bank holds 3.9%, while Axis Bank owns about 3.3%.
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