Essel Propack shares surged as much as 10 per cent in the early trade and hit their new all-time high of Rs 245.20 on Wednesday after it informed bourses that Lamitube Technologies, a wholly owned subsidiary of the company in Mauritius has agreed to acquire remaining 75.10 per cent stake in Essel Deutschland Gmbh & Co. Germany (EDG). At 9.47 am, shares of Essel Propack were trading 6.15 per cent up at Rs 236.40. The scrip opened at Rs 242.35 and has touched a high and low of Rs 245.20 and Rs 234, respectively, in trade so far. The scrip of the company later ended the day 5.52 per cent up at Rs 235.
In a BSE filing Essel Propack said, “With this acquisition, the German JV will become wholly-owned indirect subsidiary of the company. EDG is in the same business as Essel Propack. The acquisition will help Essel Propack to improve its market share in Europe and create a strong platform for growth especially in the non-oral care category.”
Essel Deutschland Gmbh & Co. Germany revenue of around US $40 million will now be consolidated in Essel’s global revenue and will boost consolidated revenue by 11 per cent. In the previous financial year ended March 31, 2016, Essel Propack’s consolidated revenue stood at Rs 2184 crore. The enterprise value of EDG is around US $32 million.
For the quarter ended June 30, 2016, Essel Propack reported a consolidated net profit of Rs 37.62 crore, up 6.63 per cent, against Rs 35.28 crore in the corresponding quarter a year ago. Net sales of the company grew by 2.79 per cent year-on-year to Rs 517.64.