Ganesh Benzoplast shares fell 5% to ₹130.94 on Wednesday after the firm disclosed a ₹1,154‑crore sale of its liquid storage tank and railway network units to Cisternina Logistics Pvt Ltd, with KKR slated to hold a majority stake.
The transaction, structured as a slump sale, will transfer terminal assets at JN Port, Goa Port, and Cochin Port, along with the company's stake in ILSL Rail Logistics, a wholly‑owned subsidiary of Infrastructure Logistics System.
The company said it will deploy the proceeds to expand chemical, food preservative, and lube‑oil additive manufacturing, and to pursue high‑value EPC projects. An EPC agreement with CLPL is expected to generate ₹240 crore in revenue over the next 18–24 months.
Chairman and Managing Director Rishi Pilani noted that the sale should unlock shareholder value and that KKR’s experience could accelerate Cisternina’s growth. CLPL director Amit Saboo added that KKR’s global reach would be instrumental in scaling the new venture.
The shares, which have risen 60% YTD, dipped 5% following the announcement, reflecting market caution over the sale’s completion timeline and regulatory hurdles. Investors now await the final regulatory approvals and the exact tranches of the ₹1,154‑crore transaction.
Looking ahead, Ganesh Benzoplast has flagged potential share buyback programmes under regulatory provisions, while the company’s plan to use sale proceeds for capacity expansion could set the stage for a new growth trajectory once the deal closes.