Jindal Poly Films has transferred its packaging films business to its wholly-owned subsidiary.
JPFL Films will receive an investment from Brookfield. The company has entered into an agreement with Special Purpose Vehicle (SPV) of Brookfield and SPV will invest Rs 2,000 crore in the subsidiary films for a 25 percent stake.
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This 25 percent stake basically values the packaging business at Rs 8,000 crore. The market capitalization is at Rs 5,600 market cap right now, so the packaging business is getting a much bigger value before what was subscribed to this particular business.
The transaction is expected to close during the first half of fiscal year 2023 and the company says that partnership with Brookfield will accelerate organic and inorganic growth plans for the business.
Watch the accompanying video of CNBC-TV18’s Sonal Bhutra for more details.
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