LIC has acquired 1 lakh shares of Kin Dyes. This follows Kin Dyes’ recent acquisition of Germany based MNC DyStar with the support of its joint venture partner Longsheng Group of China. Kin has also recently passed a resolution to raise around Rs 500 crore by way of QIP (Qualified Institutional Placement) to fund its acquisitions and reduce debt. Kin intends to turn around Dystar replacing high cost German manufacturing with low cost centres in India and China. The company hopes it will be able to turn around its latest acquisition by FYi 1. For FY12, Dystar is expected to achieve sales of Rs 4, 200 crore and PAT of around Rs 212.5 crore. At. the current price of Rs 611 the stock trades at 37 times its FY10 earnings.
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