JK Paper’s strategic merger to increase Harsh Pati Singhania & family’s stake – Times of India

MUMBAI: In a move to rationalise its corporate structure, JK Paper, under the leadership of Harsh Pati Singhania, is combining several of its arms with itself, which will also enhance the Singhania family’s ownership in India’s foremost branded paper and packaging board manufacturer.
The company, listed on Mumbai’s stock exchanges, is merging three wholly-owned subsidiaries with itself, bringing the packaging business under a single entity. Additionally, it is also amalgamating Enviro Tech Ventures, where JK Paper owns 96% stake and the Singhania family holds the balance 4%, with itself, leading to an increase in the family’s stake to 53% from 50%.
Prior to the merger with JK Paper, Enviro Tech Ventures will separate its agriculture, hunting and related services into a new entity called PSV Agro Products. Post-merger, Enviro’s subsidiary, Sirpur Paper Mills, will become JK Paper’s direct subsidiary. The Singhania family, as Enviro shareholders, will receive JK Paper shares, increasing their stake by 3.5% in this company that spans over six decades. As a result, public shareholding in JK Paper will decrease to 47% from 50%.
The three wholly-owned subsidiaries of JK Paper are JKPL Utility Packaging Solutions, Securipax Packaging and Horizon Packs. All the three operate in packaging. Their merger with the parent will optimise the use of capital assets, supply chain operations, and customer relationships, creating a stronger base for future growth, said JK Paper in a regulatory filing.
The consolidation will also remove intra-group transactions, prevent cash flow bottlenecks, and enable better capital utilisation at group level. Furthermore, it will simplify shareholding structures, reduce regulatory compliance requirements, and cut administrative costs associated with managing separate entities, added JK Paper.