JK Paper Announces Subsidiary Merger to Reshape Packaging Business

JK Paper Ltd (JKPL), one of India’s paper and packaging companies, announced a major restructuring on December 13, 2024. The company’s board has approved a plan to merge three of its wholly-owned subsidiaries, Horizon Packs Private Ltd, Securipax Packaging Private Ltd, and JKPL Utility Packaging Solutions Private Ltd, directly into JKPL. These subsidiaries, which focus on packaging solutions, will now operate as part of the parent company.

In addition to the merger, another group entity, The Sirpur Paper Mills Ltd, will become a direct subsidiary of JKPL as part of the restructuring. The company has plans to simplify its structure and make operations smoother through this.

What’s Next?

This merger won’t happen overnight. The plan needs approvals from several regulatory bodies, including SEBI, the National Company Law Tribunal (NCLT), and stock exchanges, as well as the consent of shareholders and creditors. If all goes as planned, the process should wrap up within 12 months.

Radhesham Wellpack Private Ltd (RWPL)

On the same day, JKPL’s board also approved the acquisition of a 60% stake in Radhesham Wellpack Private Ltd (RWPL). The deal involves an upfront purchase, with the remaining 40% to be acquired over the next two years. RWPL is known for manufacturing corrugated boxes and sheets, an area that has been growing in India thanks to rising demand from industries like e-commerce and FMCG.

Market Reaction

JK Paper Ltd shares are trading at ₹472.95 as of 10:40 AM today, up by ₹18.05 (3.97%), showing a year-to-date gain of 16.66% and a 21.04% increase over the past year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.