Frontier Warehousing, a company specializing in storage and logistics solutions, announced on Thursday its intention to launch an open offer to acquire up to 26 percent of Kesoram Industries. This acquisition will be priced at ₹5.48 per share, amounting to a total consideration of ₹44.22 crore.
The proposed open offer comes after Frontier Warehousing entered into a share purchase agreement (SPA) with several members of the promoter group, which includes Aditya Birla Real Estate, Pilani Investment and Industries Corporation, Manav Investment and Trading Co, and Birla Group Holdings. The agreement involves acquiring 13,29,69,279 equity shares of Kesoram Industries at ₹4 per share, representing 42.80 percent of the voting share capital.
According to a stock exchange filing by Kesoram, “Frontier Warehousing Limited (Acquirer) has triggered this Open Offer…for acquisition of up to 8,07,72,600 equity shares having a face value of ₹10 each, fully paid-up, representing 26.00 percent of the Voting Share Capital of Kesoram Industries Limited at a price of ₹5.48, aggregating to a total consideration of ₹44,26,33,848.00 payable in cash.”
On the same day, shares of Kesoram traded at ₹5.44 on the Bombay Stock Exchange (BSE), reflecting a 1.3 percent increase from the previous closing price.
In February, UltraTech Cement—the flagship company of the Aditya Birla Group—announced a share swap arrangement for Kesoram Industries, establishing a ratio of 1:52. This means that one UltraTech share will be issued for every 52 shares held by Kesoram’s equity shareholders. The scheme took effect on March 1, 2025.
Last financial year, Kesoram completed the demerger of its cement business, which was transferred to UltraTech Cement under a composite scheme of arrangement, effective from April 1, 2024. Following the demerger, Kesoram has ceased standalone manufacturing operations and has shifted its focus to its remaining business segments, including rayon, transparent paper, and chemicals, through its wholly-owned subsidiary, Cygnet Industries Limited.
The article was published on December 4, 2025.
