Essel Propack hits record high on acquiring remaining stake in JV

The stock hit a record high of Rs 245, up 10% on the BSE in early morning trade on back of heavy volumes.

Essel Propack hits a record high of Rs 245, up 10% on the BSE in early morning trade, after the company announced the acquisition of the remaining stake in Essel Deutschland Germany.

“Lamitube Technologies (LTL), a wholly owned subsidiary of the company in Mauritius has agreed to acquire remaining 75.1% share in Essel Deutschland Gmbh & Co. KG, Germany (EDG). EDG is a joint venture (JV) in which LTL is already holding 24.9% share,” Essel Propack said in a statement.

With this acquisition, the German JV will become the wholly owned indirect subsidiary of the company, which is the same business as Essel Propack.

The company said this acquisition will help Essel to improve its market share in Europe and create a strong platform for growth especially in the non-oral care category. It will also help better capacity utilization at Essel’s Europe plants and allow to widely deploy its proven capability to offer high decoration laminated tubes to the premium non oral care brands in European market.

At 09:47 am, the stock was up 6% at Rs 235 on the BSE, as compared to 0.21% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 300,944 shares changed hands on the BSE and NSE so far.