Chinese dyemaker buys 7.46% of Kiri

BEIJING: A unit of Chinese dyestuff manufacturer Zhejiang Longsheng Group has purchased a 7.46 percent stake in India's Kiri Dyes and Chemicals Ltd, which closed its initial public offering this week, Longsheng said on Saturday. The unit, Huasheng Co Ltd, bought 1.1 million shares in Kiri at 115 rupees a share, Longsheng said. Kiri issued 3.75 million shares, out of a total 15 million shares, at a listing price of 150 rupees.

Ahmedabad-based Kiri is raising the money to set up a new unit producing sulphuric acid and oleum, to ensure raw material supplies for its dyes intermediates. The company exports half its produce to Korea, Turkey, Taiwan and U.S. Longsheng shares have fallen 30 percent since the start of the year, slightly outperforming a tumbling Chinese stock market.