Kanpur Plastipack Charts Fresh Growth Path: Board to Mull Equity Fundraising as Core Business Expands

Updated: May 12, 2025 18:43

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Kanpur Plastipack Ltd, a leading manufacturer of flexible intermediate bulk containers (FIBCs) and industrial packaging solutions, is set to consider a major fundraising initiative through equity or securities. The Board of Directors will evaluate proposals for raising capital via private placement or preferential allotment, including convertible warrants, as the company accelerates its focus on core operations and future expansion.

Key Highlights:

Board to Consider Fundraising: The company’s board is scheduled to review and approve the raising of funds through equity or convertible securities, likely via private placement or preferential allotment to identified investors. The proposed transaction could result in an allotment exceeding 5% of the post-issue fully diluted share capital, with a fair valuation pegged at around ₹116.38 per share.
Strategic Shift and Balance Sheet Strengthening: This move follows the recent sale of Kanpur Plastipack’s non-core CPP film division for ₹49.25 crore to SRF Ltd. The proceeds are being used to repay outstanding term loans, significantly reducing the company’s debt and interest burden. The company is now doubling down on its profitable Raffia (FIBC and PP sacks) business, which has shown robust growth.
Promoter Commitment: Promoters are also infusing fresh capital through a preferential issue of warrants worth ₹20 crore, further boosting liquidity and signaling strong confidence in the company’s growth trajectory.
Capacity Expansion and Outlook: With a leaner balance sheet and renewed focus on its core business, Kanpur Plastipack is planning to expand its Raffia division’s capacity, capitalizing on healthy profit trends and increasing demand for industrial packaging solutions.
Shareholder Engagement: The board will seek shareholder approval for the fundraising at the upcoming AGM, ensuring transparency and alignment with investor interests.

With these strategic steps, Kanpur Plastipack is poised for a new phase of growth, leveraging fresh capital to scale operations and reinforce its leadership in the packaging industry.

Sources: Kanpur Plastipack Official Reports, Fibre2Fashion, VCCircle, Moneycontrol

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