JK Paper , a prominent player in the Indian paper industry, has made significant announcements regarding its upcoming 64th Annual General Meeting (AGM), dividend payout, and a proposed Composite Scheme of Arrangement.

No Adverse Observation Letters

JK Paper Limited has received 'No adverse observation' letters from both BSE and NSE for its proposed Composite Scheme of Arrangement. This scheme involves multiple entities including JKPL Utility Packaging Solutions Private Limited, Securipax Packaging Private Limited, Horizon Packs Private Limited, Enviro Tech Ventures Limited, and PSV Agro Products Private Limited. The observation letters were issued on August 4, under Regulation 37 of the Listing Regulations.

The NSE's letter outlines several compliance requirements that JK Paper must fulfill, including:

• Disclosure of ongoing legal proceedings
• Ensuring financial information is not more than 6 months old
• Providing detailed information about assets, liabilities, and impact on shareholders

The validity of the observation letter is six months from August 4, within which the scheme must be submitted to the National Company Law Tribunal (NCLT). It's worth noting that the Board of Directors had previously approved this scheme on December 13, subject to regulatory approvals.

AGM and Book Closure Details

JK Paper has scheduled its 64th AGM for September 1. In preparation for this important event, the company has announced a book closure period from August 19 to September 1 (both days inclusive). During this period, the Register of Members and Share Transfer Books of the company will remain closed.

Dividend Announcement

The Board of Directors of JK Paper has recommended a dividend of Rs. 5.00 per equity share, representing a 50% dividend rate on shares with a face value of Rs. 10.00 each. This dividend is subject to shareholder approval at the upcoming AGM.

Key Dates for Shareholders

Shareholders whose names appear on the company's register on August 18 will be eligible for the dividend. The company has stated that the dividend will be paid immediately after the AGM, but no later than four weeks from the date of the meeting.

Dividend Payment Process

For shareholders holding shares in dematerialized form, the dividend will be paid based on the beneficial ownership details received from the depositories. This ensures a smooth and efficient process for dividend distribution.

JK Paper, with its registered office at PO Central Pulp Mills, Fort Songadh, Dist. Tapi, Gujarat, continues to maintain its commitment to shareholder value.

These announcements reflect JK Paper's ongoing efforts to maintain transparency and keep its shareholders informed about important corporate actions. Investors and shareholders are advised to take note of these dates to ensure they don't miss out on important company proceedings and potential benefits.

JK Paper Ltd , a leading player in the Indian paper industry, has announced a strategic move to strengthen its position in the packaging sector. The company's Board of Directors has approved the acquisition of a majority stake in Borkar Packaging Private Limited (BPPL), a significant player in the packaging industry.

Acquisition Details

JK Paper will acquire a 72% stake in BPPL at a price of ₹125.46 per share. This acquisition will be executed in two phases:

1. Initial acquisition of 65.7% equity shares from existing shareholders
2. Subscription to fresh equity shares for the remaining 6.3%

The transaction is expected to be completed within twelve weeks of executing the Share Purchase Subscription and Shareholder's Agreement (SPSSHA), subject to fulfillment of specified conditions.

About Borkar Packaging

Borkar Packaging Private Limited, incorporated in 1994, is engaged in the manufacture and supply of packaging products such as folding cartons, corrugated boxes, and labels. BPPL has shown steady growth in recent years, with consolidated turnover figures as follows:

Strategic Implications

This acquisition aligns with JK Paper's long-term strategic objectives in the packaging business. By acquiring BPPL, JK Paper aims to strengthen its presence in the packaging sector, diversify its product portfolio, and potentially capture new market segments.

Q1 Financial Results

Alongside this significant announcement, JK Paper also released its unaudited financial results for the first quarter. Here are the key highlights from the consolidated results:

The company's performance in the current quarter shows a decline compared to the same quarter last year. JK Paper attributed this to lower volume and sales realization due to cheap imports, coupled with continued high wood costs.

Management Commentary

Harsh Pati Singhania, Chairman & Managing Director of JK Paper, commented on the results, stating, "Lower volume and sales realisation due to cheap imports with continued high wood cost have adversely impacted performance during the quarter."

Future Outlook

Despite the challenging quarter, JK Paper's strategic acquisition of Borkar Packaging demonstrates the company's commitment to growth and expansion in the packaging sector. This move is expected to enhance JK Paper's product offerings and market position in the long term.

The company also received board approval for the issuance of redeemable Non-Convertible Debentures up to ₹500 crore, which will be used for normal capital expenditure, long-term working requirements, and general corporate purposes.

As JK Paper navigates through the current market challenges, the integration of Borkar Packaging and the potential synergies from this acquisition will be crucial factors to watch in the coming quarters.