Sharemasterindia.com: Essel Propack shares jumped over 6 per cent to intraday high of Rs
149.75 on Tuesday after the company said that it has sold 100 per cent
stake in its wholly owned subsidiary, Packaging India, for an enterprise
value of Rs 165 crore to Amcor Flexibles India.
In a release issued to exchanges, Essel Propack said, "The agreement has been signed and the deal is completed for full cash consideration. The divestment is part of company's strategy to exit non-core adhesive lamination packaging business and pursue growth opportunity in its core tube packaging business which has great potential across the globe in beauty & cosmetics, pharma & healthcare and food category."
Essel Propack is a part of the $2.4 billion Essel Group, with turnover of $350 million. The company is into speciality packaging, manufacturing laminated plastic tubes catering to the FMCG and pharma space.
Packaging India contributed 11 per cent to the total revenue of Essel Propack.
Commenting on the divestment, Ashok Goel, vice chairman and managing director of Essel Propack said, "The divestment of Packaging India is in-line with our strategic decision to intensify focus on the core tube packaging business globally including India. We are noticing a significant growth in the demand of laminated tubes across categories. This decision will help us to further strengthen our expertise in tube packaging business and development."
As of 10.09 a.m., shares in Essel Propack traded 4.46 per cent higher at Rs 147.50 apiece, compared to 0.13 per cent fall in Nifty..
Read More: Indian Stock Market Tips
In a release issued to exchanges, Essel Propack said, "The agreement has been signed and the deal is completed for full cash consideration. The divestment is part of company's strategy to exit non-core adhesive lamination packaging business and pursue growth opportunity in its core tube packaging business which has great potential across the globe in beauty & cosmetics, pharma & healthcare and food category."
Essel Propack is a part of the $2.4 billion Essel Group, with turnover of $350 million. The company is into speciality packaging, manufacturing laminated plastic tubes catering to the FMCG and pharma space.
Packaging India contributed 11 per cent to the total revenue of Essel Propack.
Commenting on the divestment, Ashok Goel, vice chairman and managing director of Essel Propack said, "The divestment of Packaging India is in-line with our strategic decision to intensify focus on the core tube packaging business globally including India. We are noticing a significant growth in the demand of laminated tubes across categories. This decision will help us to further strengthen our expertise in tube packaging business and development."
As of 10.09 a.m., shares in Essel Propack traded 4.46 per cent higher at Rs 147.50 apiece, compared to 0.13 per cent fall in Nifty..
Read More: Indian Stock Market Tips
