Shares of JK Paper Ltd surged 2.45% to ₹466.05 during early trade on Monday after the company announced the consolidation of its business operations and acquisition of a majority stake in Radhesham Wellpack Private Ltd (RWPL).
Key Developments:
- Consolidation Move: The board approved a Composite Scheme of Arrangement for merging three wholly-owned subsidiaries—Horizon Packs Pvt Ltd, Securipax Packaging Pvt Ltd, and JKPL Utility Packaging Solutions Pvt Ltd—into JK Paper Ltd.
- Subsidiary Integration: Post-merger, Sirpur Paper Mills Ltd will become a direct subsidiary, enhancing operational efficiency.
- Strategic Acquisition: JK Paper entered into an agreement to acquire 60% of RWPL upfront, with the remaining 40% stake to be acquired within two years. RWPL specializes in packaging products, strengthening JKPL’s market presence.
Regulatory Approvals:
The scheme and acquisition are subject to approvals from SEBI, NCLT, statutory authorities, shareholders, and creditors. The consolidation is expected to complete within 12 months.
As of today, JK Paper’s stock price increased by ₹11.15, reflecting a positive investor sentiment following the announcement.
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