Kesoram Industries set for ownership change as Frontier Warehousing buys 42.8% for ₹53 crore

BK Birla Group company, Kesoram Industries Ltd, is set for a change in control as Frontier Warehousing Limited steps in as the new owner, bringing the Birla family’s association with the company to an end. The shift comes after Kesoram carved out and transferred its cement business to UltraTech Cement earlier this year.

Frontier Warehousing has announced an open offer to acquire 8.07 crore shares, representing 26% of the company, at ₹5.48 each. This follows a share purchase agreement under which it

will buy 13,29,69,279 shares from Birla-controlled promoter group entities at ₹4 per share. The transaction, valued at about ₹53 crore, covers 42.8% of Kesoram’s voting share capital and hands over effective control of the company.

The ownership change caps a restructuring process that began with the demerger of Kesoram’s cement division. UltraTech Cement completed the absorption of the business under a 1:52 share swap ratio, with the scheme taking effect on March 1, 2025. The move leaves Kesoram to focus exclusively on its remaining non-cement businesses.

Also Read: Kesoram Industries Q3 result: Net loss widens to ₹69.17 crore, revenue drops marginally

After the demerger, Kesoram ceased standalone manufacturing operations and now operates through its wholly owned subsidiary, Cygnet Industries, which houses its rayon, transparent paper and chemicals businesses. Its spun pipes and foundries unit in Bansberia, Hooghly, remains permanently closed or under suspension, while the rayon plant is also located in the Hooghly district.

Kesoram Industries reported a consolidated net loss of ₹25.87 crore in the September quarter of FY25, compared with a net loss of ₹69.92 crore a year earlier. Net sales declined 6.03% year-on-year to ₹55.17 crore. Frontier Warehousing is an unlisted company and is a leading logistics and storage solutions provider in the region. Management of Frontier was not available for comments.

Shares of Kesoram Industries Ltd ended at ₹6.52, up by ₹1.08, or 19.85%, on the BSE.

Also Read: UltraTech Cement board greenlights Kesoram demerger, plans ₹1,800 crore wires & cables foray