Essel Propack rose 3.69% to Rs 146.30 at 14:06 IST on BSE, with the stock extending Monday's rally triggered by the company's board approving divestment of its wholly owned subsidiary viz. Packaging India to Amcor Flexibles India.
Meanwhile, the S&P BSE Sensex was up 44 points or 0.16% at 28,005.19.
On BSE, so far 1.26 lakh shares were traded in the counter as against average daily volume of 17,522 shares in the past one quarter.
The stock hit a high of Rs 149.60 so far during the day, which is a record high for the counter. The stock hit a low of Rs 143.70 so far during the day. 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 13 July 2015, advancing 15.09% compared with the Sensex's 5.81% rise. The scrip had also outperformed the market in past one quarter, rising 5.77% as against Sensex's 3.73% fall.
The small-cap company has equity capital of Rs 31.42 crore. Face value per share is Rs 2.
Also Read
Shares of Essel Propack have risen 9.26% in two trading sessions from a recent low of Rs 133.90 on 10 July 2015, after the company during market hours yesterday, 13 July 2015, said that its board of directors at a meeting held on 13 July 2015, approved the divestment of its wholly owned subsidiary viz. Packaging India (PIPL) to Amcor Flexibles India. The stock had risen 5.38% to settle at Rs 141.10 yesterday, 13 July 2015. 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. The enterprise value of the divested business is Rs 165 crore, it added.
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 the largest speciality packaging global company, manufacturing laminated plastic tubes catering to the FMCG and pharma space.
Powered by Capital Market - Live News