Kiri Industries shares surged 32 per cent in the past two trading sessions after the company informed bourses that it has executed agreements for settlement of all its debt by the end of financial year 2016. The share price of the company surged over 101 per cent in the past six trading sessions.
Kiri Industries shares advanced to Rs 167.30 on April 6 from Rs 83.05 on March 29 last month.
The agreement has resulted in significant reduction of the borrowing of the company by the end of financial year 2015-16 and the total borrowing of Kiri Industries have been reduced from Rs 853.13 crore to Rs 410.62 crore, which is about 51.87 per cent reduction compared to the previous financial year.
As per settlement agreements executed, the company is committed to settle and repay majority of the balance debt during the current financial year 2016-17.
Also, there has been a sudden dramatic change in the market situation of Dyes Intermediate especially H Acid and Vinyl Sulphone due to closure of a leading manufacturing plant in China. The average price of H Acid during the previous financial year which has been ranging from Rs 300 to Rs 360 per kg, has shot up to about Rs 900 to Rs 1000 per kg and average price of Vinyl Sulphone during the previous financial year which stood at Rs 160 to Rs 180 per kg has shot up to about Rs 240 to Rs 275 per kg globally.
Kiri has installed capacity to manufacture 7200 MTPA of H Acid and 18000 MTPA of Vinyl Sulphone.
On Wednesday, the share price of the company surged 10 per cent to Rs 167.30.