Kanpur Plastipack Limited , a manufacturer and exporter of flexible intermediate bulk containers (FIBC), PP multifilament yarn, UV master batches, and fabrics, has successfully allotted 10,12,000 fully convertible equity warrants at ₹130 per warrant on a preferential basis. This move has raised ₹13.16 crore for the company, as disclosed in a recent regulatory filing.

Warrant Allocation Details

The warrants were distributed among promoters, promoter group members, and public investors:

Key recipients of the warrants include:

• Shashank Agarwal (Promoter): 1,62,000 warrants
• Raghushree Earning Solutions LLP (Promoter Group): 3,85,000 warrants
• Jayatika Goyal (Public): 1,80,000 warrants

Financial Terms

Investors have paid an upfront amount of ₹40 per warrant, which is more than 25% of the issue price. The remaining ₹90 per warrant is due upon conversion within 18 months. Each warrant is convertible into one equity share with a face value of ₹10.

Regulatory Compliance

The allotment has received necessary approvals from both the BSE and NSE, following earlier board and shareholder approvals. The securities are subject to lock-in restrictions as per the Securities and Exchange Board of India (SEBI) regulations.

Impact on Shareholding

Assuming full conversion of the warrants, the post-issue shareholding of key stakeholders would be:

Company Background

Kanpur Plastipack Limited (CIN: L25209UP1971PLC003444) is based in Kanpur, India. The company specializes in the manufacture and export of flexible intermediate bulk containers (FIBC), PP multifilament yarn, UV master batches, and fabrics.

This preferential allotment of warrants is expected to strengthen the company's financial position and support its growth initiatives in the packaging and textile sectors.

Kanpur Plastipack Ltd , a leading manufacturer of flexible intermediate bulk containers (FIBCs) and packaging solutions, has reported a remarkable financial performance for the fourth quarter. The company's results showcase significant improvements across key financial metrics, indicating a strong recovery and growth trajectory.

Financial Highlights

• Profit Before Tax (PBT): Increased to ₹139.00 crore from ₹30.00 crore, marking an impressive 363.33% growth.
• EBITDA: Rose to ₹179.00 crore from ₹76.00 crore, with the EBITDA margin improving to 9.78% from 5.09%.
• Net Profit: Increased to ₹29.00 crore from ₹26.00 crore.
• Revenue: Grew to ₹1,830.00 crore from ₹1,600.00 crore, representing a 14.38% increase.

Exceptional Item

The company reported an exceptional item of ₹116.00 crore, which significantly contributed to the overall financial performance for the quarter.

Quarterly Performance Analysis

Examining the most recent quarterly data available:

The quarter-on-quarter comparison reveals substantial improvements across all key financial indicators. The company's revenue grew by 6.86%, while EBITDA and operating profit showed remarkable increases of 58.72% and 56.67%, respectively. Most notably, the net profit surged by an impressive 358.82%, translating to a significant boost in earnings per share (EPS) from ₹0.77 to ₹3.63.

Operational Performance

The strong financial results reflect Kanpur Plastipack's operational efficiency and market demand for its products. The company's ability to significantly improve its EBITDA margin from 5.09% to 9.78% indicates enhanced cost management and operational optimization.

Conclusion

Kanpur Plastipack's Q4 performance demonstrates a robust turnaround and sets a positive tone for the company's future prospects. The substantial growth in profit before tax and other key metrics underscores the effectiveness of the company's strategies in navigating market challenges and capitalizing on opportunities in the packaging industry.

Investors and market observers will likely keep a close watch on Kanpur Plastipack's future quarters to see if this strong performance trend continues, especially in light of the significant exceptional item reported this quarter.