JK Paper Ltd. (NSE: JKPAPER, BSE: 532162) has announced the acquisition of a 72% stake in Borkar Packaging Private Limited (BPPL) for a total consideration of approximately ₹235 crore, marking a significant move to expand its presence in the fast-growing Indian packaging industry.
The acquisition will be carried out at a price of ₹125.46 per equity share of face value ₹10 each. It includes the purchase of 65.7% equity from existing shareholders and the subscription to fresh equity shares for an additional 6.3%, totaling 1.87 crore equity shares. The acquisition does not constitute a related party transaction, and none of JK Paper’s promoters or group entities have any interest in BPPL.
JK Paper expects to complete the acquisition of the initial 72% stake within twelve weeks of signing a Share Purchase, Subscription, and Shareholders’ Agreement (SPSSHA). The remaining 28% stake is proposed to be acquired over the next four years, subject to conditions outlined in the agreement.
Strategic Fit and Growth Ambitions
Commenting on the acquisition, Mr. Harsh Pati Singhania, Chairman & Managing Director of JK Paper, stated:
“The packaging conversion business is among the fastest-growing segments in the Indian paper and packaging industry. The acquisition of BPPL is aligned with our long-term strategic goals and enhances our capability to offer integrated solutions across secondary and tertiary packaging.”
About Borkar Packaging
Borkar Packaging Private Limited, incorporated on October 6, 1994, and headquartered in Margao, Goa, is a leading manufacturer of folding cartons, corrugated boxes, and labels, operating seven manufacturing units across India.
BPPL’s consolidated turnover in recent financial years:
- ₹393.20 crore in FY 2023-24
- ₹404.61 crore in FY 2022-23
- ₹369.16 crore in FY 2021-22
The company has a paid-up share capital of ₹21.25 crore.
Deal Structure & Financial Terms
- Total Acquisition Cost: ₹235 crore
- Consideration Type: Entirely in cash
- Regulatory Approvals: Not required
- Completion Timeline: 72% stake within 12 weeks; remainder over four years
Strategic Impact
The acquisition is expected to strengthen JK Paper’s leadership in the corrugated packaging segment and place it among the top three players in the folding cartons space. The company sees strong synergy with its existing packaging business and expects to deliver greater value to customers through enhanced offerings and operational scale.