JK Paper acquires majority stake in Horizon Packs and Securipax Packaging

JK Paper, one of India's largest Paper & Packaging Board Companies, entered into Share Purchase and Shareholders' Agreements (SPSHAs) for the acquisition of 85% shares of Horizon Packs Private Ltd. (HPPL) and Securipax Packaging Private Ltd. (SPPL), and the balance 15% within a period of 3 years as per the respective SPSHAs.

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 a consolidated Revenue of Rs. 832 Cr. 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.

Speaking on the occasion, Mr. Harsh Pati Singhania, Vice Chairman and Managing Director, JK Paper Ltd. 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.

The shift in consumer preferences are driving demand for superior quality, 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, its high standards in operational excellence, financial management and corporate governance."

Shares of JK Paper Limited was last trading in BSE at Rs. 420.05 as compared to the previous close of Rs. 423.80. The total number of shares traded during the day was 28795 in over 1008 trades.

The stock hit an intraday high of Rs. 428.15 and intraday low of 418.80. The net turnover during the day was Rs. 12173462.00.

Source : Equity Bulls

Keywords

JKPaper INE789E01012 Acquisition HorizonPacks SecuripaxPackaging