Shares of a paper company appreciated to the tune of 5 percent to reach an intraday high of ₹ 701.00 apiece on the National Stock Exchange (NSE) after it received a nod from the National Company Law Tribunal (NCLT) to acquire Uniply Decor.
According to an exchange filing, West Coast Paper Mills has received verbal approval from the Chennai Bench of the NCLT to acquire Uniply Decor. The approval has been received under the provisions of the Insolvency and Bankruptcy Code, 2016.
Currently, Uniply Decor is undergoing an Insolvency Resolution Process (CIRP). The resolution plan, submitted by West Coast Paper Mills was previously approved by the Committee of Creditors of Uniply Décor and marks a crucial step towards the company’s expansion and diversification efforts.
While an initial verbal approval is a promising indication, the formal written order from the National Company Law Tribunal is still awaited. West Coast Paper Mills will provide further updates upon receiving the official written confirmation.
West Coast Paper Mills is one of the largest producers of paper for printing, writing, and packaging in India. The mill is located at Dandeli in Uttara Kannada district in Karnataka.
With a market capitalization of ₹ 4,427 crores, West Coast Paper mills is a small-cap company. It has a high return on equity of 51.45 percent and an ideal debt-to-equity ratio of 0.09. Its shares were trading at a price-to-earnings ratio (P/E) of 4.42, which is lower than the industry P/E of 8.72, indicating that the stock might be undervalued as compared to its peers.
The company’s promoters hold a 56.53 percent stake in it, followed by retail investors with 29.00 percent, foreign institutions with 7.38 percent, mutual funds with 6.70 percent and other domestic institutions with 0.39 percent.
Written by Simran Bafna
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