Shares of Jindal Poly Films skyrocketed over 11 percent in early trade on June 8, a day after the company announced entering an agreement to buy a 100 percent stake in the Netherlands-based JPF Netherlands Investment.
At 10.48am, shares of Jindal Poly Films were trading with gains of 8.94 percent at Rs 732.40 on the National Stock Exchange. The stock also touched an intraday high of Rs 749.05.
Volumes in the counter were also strong as five lakh shares of the company changed hands on the exchanges, as compared to the one-month daily traded average of two lakh shares.
The total cost of the acquisition was pegged at 44 million euros or Rs 396 crore. JPF is engaged in the business of packaging films business through its three operational wholly owned subsidiaries based out of France, Italy, and the UK.
These operational entities engage in the manufacturing of specialty films, nylon films, coated films, metalised films, and laminates. The primary application of these products is in the flexible packaging industry, specifically for food, pharmaceutical, and luxury goods sectors.
JPF recorded a consolidated turnover of 82.38 million euros in the fiscal year 2021-22.
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"The target company provides through its subsidiaries enhanced capabilities and resources that complement our existing strength, enabling us to offer a broader range of products and services," Jindal Poly stated in an exchange filing.
The acquisition will also help the company diversify its offerings through expansion into related products, aid revenue synergies and allow cross selling opportunities. On top of that, the deal will also provide Jindal Poly with a common sourcing of raw material, technology and know-hows, the management highlighted.
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