The shares of prominent film manufacturers fell up to 8 percent after a fire accident took place at the company’s plant situated at Nashik, Maharashtra, India. With a market capitalization of Rs 2,848.09 crore, the shares of Jindal Poly Films Ltd were trading at Rs 650.45 per share, decreasing around 6.52 percent as compared to the previous closing price of Rs 695.85 apiece.
The shares of Jindal Poly Films Ltd have seen bearish movement after a fire accident took place at the company’s plant situated at Nashik, Maharashtra, India. The production operation in the plant is temporarily disturbed. The cause of the fire will be assessed in due course by the company.
Additionally, in April this year, minority shareholders of Jindal Poly Films filed a class action suit with the NCLT, accusing the promoters of siphoning off funds. They claimed this alleged misconduct led to significant financial losses for the company, estimated at around ₹2,000 crore.
As per the complaint filed with NCLT on April 9, Jindal Poly Films allegedly invested ₹700 crore between FY2013 and FY2017 in two related firms—Jindal India Powertech Ltd and Jindal India Thermal Power Ltd—using financial instruments like Optionally Convertible Preference Shares (OCPS) and Redeemable Preference Shares (RPS).
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Looking forward to the company’s financial performance, revenue increased by 39 percent from Rs 983.76 crore in Q3FY24 to Rs 1,371.20 crore in Q3FY25. During the same period, net loss turned into profits from a loss of Rs 19.44 crore to a profit of Rs 4.11 crore.
JPFL Films, a Jindal Poly Films subsidiary, will invest over Rs 700 crore to expand capacity in Nashik by adding new BOPP, PET, and CPP lines. With 80% current utilisation, the expansion adds 42,000 tonnes BOPP, 55,000 tonnes PET, and 18,000 tonnes CPP, to be commissioned within 2–3 years.
Jindal Poly Films Limited is engaged in the production and sale of packaging films. The Company segments include Flexible Packaging Film and Nonwoven Fabrics. The Company is diversified into the manufacturing of bi-axially oriented polyethylene terephthalate (BOPET) film and biaxially oriented polypropylene (BOPP) films.
Written by Abhishek Singh
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