JK Paper Limited board approves investment, acquisition

The Board of Directors of JK Paper Limited at its meeting held today, i.e., on Friday, 30th July 2021, approved the investment of Rs 150 crore for setting up Corrugated Packaging Plant.

The board also approved the acquisition of business of Deepti Electronics & Electro Optics Private Limited, as a going concern on slump sale basis for a net cash consideration of around Rs. 25 crore under a Business Transfer Agreement.

Deepti Electronics & Electro Optics Private Limited ('Delopt') was incorporated on 9th June 2000 under the provisions of the Companies Act, 1956, having its registered office at # 3&4, 1st Cross, 7th Main, J C Industrial Area, Off. Kanakpura Main Road, Bengaluru-560062, Karnataka and is engaged in the business of design, development and production of Embedded Systems and Electro-optics Systems which includes supplying thermal imaging, peopie counting systems and other Electro optics products and services that have defence and civilian applications. It has its operations in India and its turnover in preceding three financial years was - Rs. 21.16 crore in FY 2020-21, Rs. 28.64 crore in FY 2019-20 and Rs. 23.12 crore in FY 2018-19. The promoter and promoter group of the Company hold in aggregate 98.84% of its equity shares. The Business Transfer Agreement ('BTA') is expected to be concluded within 3 months after requisite approval of the Board of Directors of Delopt and other terms and conditions, if any, agreed in BTA. No governmental or regulatory approvals are required for the said acquisition of business. There would be no acquisition of shares of Delopt by the Company pursuant to the said transaction. The proposed transaction is not a related party transaction within the meaning of SEBI Listing Regulations. Acquisition of this business will enable the Company to diversify its business portfolio and enhance its economic value from emerging electro-optics business.

Shares of JK PAPER LTD. was last trading in BSE at Rs. 260.9 as compared to the previous close of Rs. 262.45. The total number of shares traded during the day was 231721 in over 3485 trades.

The stock hit an intraday high of Rs. 268 and intraday low of 255.75. The net turnover during the day was Rs. 60613389.

Source : Equity Bulls

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