This Smallcap stock which deals in the business of producing various packaging products including glass containers, PET bottles, specialty glass, and security caps and closures cracked 19 percent after the Supreme Court set aside the HNG acquisition resolution plan.
Share Price Movement
In Wednesday’s trading session, AGI Greenpac‘s share price was up by 7 percent to the day’s high of Rs. 1,008.55. The stock sharply reacted and touched a day’s low of Rs. 761.55 which is 19 percent down from the previous close of Rs. 940.60 per share. In the past year, the stock has given around 3 percent returns and underperformed the Nifty Index.
What Happened
The company’s stock declined as per sources after the Supreme Court set aside the AGI Greenpac’s Resolution plan for the HNG (Hindusthan National Glass & Industries) Acquisition. The court stated that fresh resolutions were to be considered for the acquisition.
Earlier HNG was admitted into insolvency proceedings in October 2021. Then Independent Sugar Corporation and AGI Greenpac were in a bid to acquire HNG and the latter won the bid. The Committee of Creditors approved the acquisition before the Competition Commission of India’s approval.
AGI Greenpac Management on HNG Acquisition
In a recent concall, the management said “ If for any reason acquisition doesn’t go through, there is a natural evolutionary process in the Company to grow organically. But that’s plan B. But that plan has not yet approved by the Board. It’s very difficult for us, any of us to make a firm commitment what is plan B or plan C. Any organization do have a number of plans in place. But we can talk about the same to the market only once it is approved by the Board. But definitely, then other way route should be on the organic growth.”
Financials
In its latest filing for the quarter ending December 2024, the company reported a 5.61 percent rise in revenue, reaching Rs.658 crore compared to Rs.623 crore in Q3FY24. During the same period, net profit increased by 35.82 percent to Rs.91 crore in Q3FY25, compared to Rs.67 crore in Q3FY24.
Company Profile
AGI Greenpac is one of the prominent Indian manufacturers of glass containers, PET bottles, and security caps. The company was established in 1981 and it focuses on innovative, sustainable packaging solutions across various industries.
Written by – Santhosh S
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