Gravure rollers are cylindrical components used in rotogravure printing, where they transfer ink onto substrates like paper, plastic, or metal. These rollers are engraved with microscopic cells that hold and release ink for precise and high-quality printing. Industries such as packaging, publishing, and decorative laminates heavily rely on gravure rollers for applications like flexible packaging, labels, and gift wraps.
In India, the gravure roller market has significant growth potential, driven by the expanding packaging and FMCG sectors. The rising demand for eco-friendly packaging and printed materials is boosting adoption. Companies like Technova Imaging Systems, Shilp Gravures Ltd., Lohia Corp, and local players manufacture gravure rollers in India, contributing to both domestic supply and exports, offering opportunities for innovation and market expansion.
Share Price
The shares of Shilp Gravures Ltd. are currently trading at Rs. 306 up 3.61% from its previous close of Rs. 295.3 as of December 13, 2024.
Recent Update
Overview of the Share Purchase Agreement
The owners of Shilp Gravures Limited have made a deal to sell part of the company to two buyers: Aikyam Sampati Management LLP and Mr. Pranav Chandrakant Bhalara. According to the agreement signed on December 12, 2024, the buyers will purchase 37,36,207 fully paid shares, each worth face value of INR 10. This means they will own 60.75% of the company, giving them control over its decisions.
Financial Details of the Transaction
The shares will be acquired for INR 159.35 per equity share, amounting to a total transaction value of INR 59,53,64,585.45. This substantial investment highlights the Acquirers’ confidence in Shilp Gravures’ growth potential and market position, particularly in the gravure roller industry.
Strategic Implications of the Agreement
This transaction reflects a significant ownership shift, granting the Acquirers majority control of Shilp Gravures. It also demonstrates a strategic move to leverage the company’s expertise in gravure technology, ensuring continued innovation and business growth.
Open Offer Requirement Under SEBI Regulations
Following the execution of the Share Purchase Agreement (SPA), the Acquirers are obligated to make an Open Offer to the public shareholders of Shilp Gravures Limited. This complies with the provisions of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
The Open Offer ensures that public shareholders have an opportunity to sell their shares to the Acquirers at a predetermined price, safeguarding their interests during significant ownership changes. This regulatory requirement aims to promote transparency and fairness in substantial acquisition transactions, protecting minority shareholders and maintaining equitable treatment in the securities market.
About the Company
Incorporated in 1993, Shilp Gravures Ltd (SGL) is India’s pioneering manufacturer of engraved copper rollers and a leader in gravure technology. It established the country’s first gravure roller manufacturing house and specializes in engraving rollers using advanced electronic, laser, and chemical etching technologies. These rollers are widely used in the printing and packaging industries, ensuring precision and quality in various applications.
Additionally, SGL is involved in energy generation through windmills, reflecting its commitment to sustainability. With its expertise and innovation, SGL plays a vital role in supporting India’s growing printing and packaging sectors while contributing to renewable energy initiatives.
Written By: Dipangshu Kundu
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
