JK Paper jumps 4 percent on acquiring majority stake in Horizon Packs and Securipax Packaging
Published On: Tuesday, November 22, 2022 | By: Team KnowMyStock
Shares of JK Paper traded 4 percent higher at Rs 435.90 on the BSE in Tuesday’s intra-day trade after the company acquired a majority stake in Horizon Packs and Securipax Packaging. The company added that the acquisition represents an 85 percent stake in both companies and will take place in phases. The balance 15 percent stake will be bought within a period of 3 years.JK Paper informed the Securities and Exchange Board of India (SEBI) that its board of directors had on Monday approved the acquisition of both companies at its meeting. JK Paper has entered into a separate share purchase and shareholders’ agreement with the promoters and shareholders of both firms.JK paper will acquire 26.92 crore equity shares in HPPL for Rs 19.33 per share and 4.63 lakh equity shares for Rs 1,256.95 apiece in SPPL -- representing an 85 percent stake in each company.
HPPL and SPPL together are India’s largest Corrugated Packaging manufacturers with seven (7) plants across the country. In FY 2021-22, HPPL and SPPL had consolidated revenue of Rs 832 crore. Corrugated Packaging is a rapidly growing segment in the Indian Paper & Packaging industry driven by growth in end-use industries such as food & beverage, FMCG, etc., the company said.
"It is a privilege to join hands with India's largest player in the Corrugated Packaging segment. This together with JK Paper's upcoming corrugated facility in Ludhiana will establish it as the largest player in the corrugated packaging industry," JK Paper Vice Chairman and Managing Director Harsh Pati Singhania said.
He said that the shift in consumer preferences is driving demand for superior quality and eco-friendly packaging.
"This acquisition gives us an opportunity to benefit from the existing strengths of HPPL and SPPL. HPPL and SPPL's customers, employees, vendors and partners will benefit from JK Paper's strong manufacturing knowledge and experience," Singhania said.
We are on Telegram!
JOIN our telegram channel to receive updates on Financial News and Stock and FNO Tips.
Click Here!
Follow Us On:
