The development follows the demerger of Kesoram’s cement business into UltraTech Cement in FY25, leaving the company focused on rayon, transparent paper and chemicals.
Storage and logistics solutions company Frontier Warehousing on Thursday proposed launching an open offer to acquire up to a 26 per cent stake in Kesoram Industries, a BK Birla Group company, at a price of ₹5.48 per share, aggregating to a total consideration of ₹44.22 crore.
The proposed open offer triggered as Kolkata-based Frontier Warehousing has entered into a share purchase agreement (SPA) with certain members of promoters/promoter group, including Aditya Birla Real Estate, Pilani Investment and Industries Corporation, Manav Investment and Trading Co, and Birla Group Holdings, to acquire 13,29,69,279 equity shares of Kesoram Industries, having face value of ₹10 each fully paid-up, representing 42.80 per cent of the voting share capital at a price of ₹4 per equity share.
“Frontier Warehousing Limited (Acquirer) has triggered this Open Offer…for acquisition of up to 8,07,72,600 equity shares having face value of 10 each, fully paid-up, representing 26.00 per cent of the Voting Share Capital of Kesoram Industries Limited at a price of ₹5.48 (Target Company) aggregating to a total consideration of 44,26,33,848.00 payable in cash,” Kesoram said in a stock exchange filing.
On Thursday, Kesoram scrip ended the day at Rs 5.44 apiece on BSE, up 1.3 per cent from the previous close.
UltraTech Cement, the flagship Aditya Birla Group company, in February announced a 1:52 share swap ratio for the acquisition of Kesoram Industries. As per the scheme of arrangement, one UltraTech Cement share was issued for every 52 shares held by equity shareholders of Kesoram Industries. The scheme was effective March 1, 2025.
Accordingly, during the last financial year, Kesoram completed the demerger of its Cement business, which was transferred to UltraTech Cement (UTCL) under a composite scheme of arrangement between it and UTCL, with the appointed date being April 1, 2024.
“Following the demerger, the company ceased standalone manufacturing operations and continued to focus on the remaining business including business operations of Rayon, Transparent Paper & Chemicals under its wholly-owned subsidiary, Cygnet Industries Limited,” Kesoram Industries said in its latest annual report.
Published on December 4, 2025
