JK Paper’s strategic merger to increase Harsh Pati Singhania & family’s stake – Newz9

MUMBAI: In a transfer to rationalize its company construction, JK Paper, beneath the management of Harsh Pati Singhaniais combining a number of of its arms with itself, which may even improve the Singhania family’s possession in India’s foremost branded paper and packaging board producer.
The firm, listed on Mumbai’s inventory exchanges, is merging three wholly-owned subsidiaries with itself, bringing the packaging enterprise beneath a single entity. Additionally, it is usually amalgamating. Enviro Tech Venturesthe place JK Paper owns 96% stake and the Singhania household holds the stability 4%, with itself, main to an increase within the family’s stake to 53% from 50%.
Prior to the merger with JK Paper, Enviro Tech Ventures will separate its agriculture, searching and associated companies into a brand new entity known as PSV Agro Products. Post-merger, Enviro’s subsidiary, Sirpur Paper Millswill develop into JK Paper’s direct subsidiary. The Singhania household, as Enviro shareholders, will obtain JK Paper shares, rising their stake by 3.5% on this firm that spans over six a long time. As a consequence, public shareholding in JK Paper will lower to 47% from 50%.
The three wholly-owned subsidiaries of JK Paper are JKPL Utility Packaging Solutions, Securipax Packaging and Horizon Packs. All the three function in packaging. Their merger with the mother or father will optimize the usage of capital belongings, provide chain operations, and buyer relationships, making a stronger base for future progress, mentioned JK Paper in a regulatory submitting.
The consolidation may even take away intra-group transactions, forestall money move bottlenecks, and allow higher capital utilization at group degree. Furthermore, it should simplify shareholding buildings, cut back regulatory compliance necessities, and minimize administrative prices related to managing separate entities, added JK Paper.