Essel Propack jumps after board's nod to divest wholly owned subsidiary

Essel Propack rose 4.63% to Rs 140.10 at 15:21 IST on BSE after the company said that its board of directors at a meeting held today, 13 July 2015, approved the divestment of its wholly owned subsidiary viz. Packaging India to Amcor Flexibles India.

The announcement was made during market hours today, 13 July 2015.

Meanwhile, the BSE Sensex was up 290.80 points or 1.05% at 27,952.20.

On BSE, 1.23 lakh shares were traded in the counter as against average daily volume of 16,674 shares in the past one quarter.

The stock hit a high of Rs 144.30 and a low of Rs 134 so far during the day. The stock had hit a record high of Rs 144.50 on 11 May 2015. The stock had hit a 52-week low of Rs 93.75 on 14 July 2014.

The stock had outperformed the market over the past one month till 10 July 2015, advancing 6.86% compared with Sensex's 3.06% rise. The scrip had also outperformed the market in past one quarter, rising 6.86% as against Sensex's 4.22% fall.

The small-cap company has equity capital of Rs 31.42 crore. Face value per share is Rs 2.

Essel Propack's board of directors at its meeting held today, 13 July 2015, approved the divestment of its wholly owned subsidiary viz. Packaging India (PIPL) to Amcor Flexibles India. The agreement to this effect has been signed and the deal completed for full cash consideration, Essel Propack said. The divestment is part of company's strategy to exit non-core adhesive lamination packaging business and pursue growth opportunity in its core tube packaging business which has great potential across the globe in the beauty & cosmetics, pharma & health and food categories, Essel Propack said. Consequent to the above, PIPl has ceased to be a subsidiary of Essel Propack with immediate effect, it added.

The present deal will provide PIPL and its talent an opportunity to further grow and prosper in the flexible packaging space as part of Amcor, an Australia listed global packaging company engaged in flexible and rigid packaging, Essel Propack said.

On consolidated basis, Essel Propack's net profit rose 66.1% to Rs 45.41 crore on 5.3% growth in net sales to Rs 602.62 crore in Q4 March 2015 over Q4 March 2014.

Essel Propack is a specialized packaging company promoted by Essel Group.

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