JK Paper rose 2.84% to Rs 87 at 09:35 IST on BSE after the company decided to sell its 20% shareholding in Oji JK Packaging to Oji Holdings Corporation.
The announcement was made after market hours yesterday, 22 December 2016.Meanwhile, the S&P BSE Sensex was up 2.90 points or 0.01% at 25,982.50
On the BSE, 1.21 lakh shares were traded on the counter so far as against the average daily volumes of 2.17 lakh shares in the past one quarter. The stock had hit a high of Rs 89 and a low of Rs 86.25 so far during the day.
The stock had hit a record high of Rs 101.80 on 3 November 2016. The stock had hit a 52-week low of Rs 40.30 on 29 February 2016. The stock had outperformed the market over the past 30 days till 22 December 2016, rising 3.55% compared with the 0.28% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 37.34% as against Sensex's 9.38% decline.
The small-cap company has equity capital of Rs 155.96 crore. Face value per share is Rs 10.
JK Paper had on 25 October 2012 entered into a joint venture (JV) agreement with Oji Holdings Corporation, Japan (OHC), Marubeni Corporation, Japan and Oji India Packaging (later renamed as Oji JK Packaging) (OJPPL) for the purpose of manufacturing and sale of corrugated packaging products by OJPPL and had thereafter subscribed to 1.25 crore equity shares, being 20% shareholding of OJPPL.
JK Paper said that the company has decided at its meeting of committee of directors held yesterday, 22 December 2016, to sell its 20% shareholding in OJPPL to OHC, one of the joint venture parties. The company has authorised certain directors/executives of the company to sign the share purchase agreement and to transfer the relevant shares to OHC, whereby the company would cease to be a party of the joint venture, JK Paper said.
JK Paper's net profit surged 144.9% to Rs 43.96 crore on 14.35% rise in net sales to Rs 673.23 crore in Q2 September 2016 over Q2 September 2015.
JK Paper is India's leading branded paper company and the largest producer of photocopier paper.
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