The shares world’s largest specialty packaging firm, specializing in manufacturing laminated tubes for the packaging of a variety of products is down upto 10 percent following Indorama Ventures to Acquire a Minority Stake of 24.9 percent stake in the company.
Price action
With a market capitalization of Rs. 6,913.43 crores on Monday, the shares of EPL Limited are down by upto 9.8 percent making a low of Rs. 214.30 per share compared to its previous closing price of Rs. 237.80 per share.
What Happened
EPL Limited, engaged in manufacturing laminated tubes for the packaging of a variety of products, has seen a drastic decline following the announcement of Global Packaging Major, Indorama Ventures acquisition of a minority stake in EPL Ltd from Blackstone for Rs. 240 per share.
As per the (Sale purchase agreement) SPA, Epsilon will sell 7,94,94,085 equity shares (24.90 percent stake) of EPL to Indorama for Rs. 240 per share, amounting to Rs. 1,907.86 crore and the sale is expected to be completed in the coming months, subject to customary closing conditions and approvals.
Management Commentary
Amit Dixit, Head of Asia Private Equity, Blackstone, said: “We are pleased to continue to support EPL in its growth journey. Over the last few years, in conjunction with the management team led by CEO Anand Kripalu, we have helped build the business into one of the fastest-growing packaging companies worldwide. EPL is now a global leader in sustainable packaging, supplying some of the leading brands across sectors. We are excited to welcome IVL as an investor in EPL.”
Aloke Lohia, Founder and Group CEO of Indorama Ventures, said: “EPL is known for its innovative, high-quality packaging products across the globe and resonates with Indorama’s philosophy of investing in attractive businesses with great future potential, globally as well as in India.”
Anand Kripalu, Managing Director and Chief Executive Officer of EPL, said: “We are grateful for Blackstone’s support over the years and look forward to their continuing contribution to our journey. This partnership has resulted in meaningful growth by increasing our presence in emerging markets, focusing on sustainable tubes, and increasing our market share in the fast-growing beauty, cosmetics, and pharmaceutical industries. We look forward to having IVL, with global presence and expertise, as an investor in EPL.”
About the Company
EPL Limited is a leading global player in the manufacturing of laminated tubes, primarily used for packaging a wide range of products such as cosmetics, pharmaceuticals, and food items. The company specializes in providing packaging solutions that combine functionality with aesthetic appeal, ensuring high-quality standards.
Financials
The company’s total revenue rose by 2.8 percent from Rs. 998.8 crores to Rs. 1,027 crores in Q3FY24-25. Meanwhile, Net profit rose from Rs. 86.1 crores to Rs. 93.5 crores during the same period.
Written by Sridhar J
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