Orient Paper surges on board nod for rights issue, demerger of consumer electric biz

The stock moved higher to its 52-week high of Rs 84.30, up 13% on the BSE.

Orient Paper & Industries has touched its 52-week high of Rs 84.30, up 13% on the BSE, after the company said the board has decided to raise capital through rights issue of equity shares of the company for an amount aggregating to Rs 50 crore.

“A swap ratio, price, record date and other matters to be fixed at a later date, subject to necessary approvals,” Orient Paper & Industries said in a statement.

The board has also given in-principle consent for vertical demerger of consumer electric business of the company into a wholly owned subsidiary (to be incorporated), subject to the final approval of the board of the proposed terms of the demerger, it added.

The company said the demerger is to facilitate both paper and consumer electric businesses to focus on their core competencies and to pursue their independent strategies.

The timing of the demerger coincides with the improvement in the company’s paper business performance and sustained steady performance of the consumer electric business, it added.

At 01:58 pm, the stock was up 8% at Rs 80 on the BSE, as compared to 0.13% fall in the S&P BSE Sensex. A combined 7.36 million shares changed hands on the counter on the BSE and NSE so far.