Synopsis: On the final trading session of FY2025-26, JK Paper Limited completed the last formal step of its NCLT-approved amalgamation scheme, triggering a 7.2 percent intraday surge to Rs. 330.5 as investors read the completion as a structural clearing event that consolidates the company’s packaging push ahead of Q1 FY27.
Shares of a leading paper and packaging manufacturer surged to an intraday high of Rs. 330.5 on March 31, 2026, up approx 7.9 percent from the previous close after the company filed a Regulation 30 disclosure confirming that its Committee of Directors had formally approved the allotment of new equity shares under its court-sanctioned amalgamation scheme.
With a market capitalisation of Rs. 5,600 crore, the shares of JK Paper Limited were trading at Rs. 330.35 per share, up 7.82 percent from its previous close of Rs. 306.40. It is trading at a P/E of 18.8.
Allotment Update
Pursuant to the Scheme of Amalgamation sanctioned by the NCLT’s Delhi and Kolkata benches, JK Paper’s Committee of Directors on March 31, 2026 approved the allotment of 1,24,37,133 equity shares of face value Rs. 10 each, while shareholders of two wholly owned subsidiaries: Horizon Packs Private Limited and Securipax Packaging Private Limited. Both entities are now formally absorbed into the parent, ceasing to exist as separate legal units.
The allotment marks the final procedural milestone in a restructuring arc that has been running since the NCLT approval, which was confirmed in early February 2026. Completing the share allotment on March 31 means the amalgamated structure takes effect on JK Paper’s books from the start of FY2026-27, giving investors and management a clean consolidated baseline from Q1 FY27 onwards.
The new shares represent a dilution of approximately 7.3 percent relative to the pre-allotment equity base of 1,69,00,000 shares, bringing the post-allotment total to roughly 2,93,37,133 shares. The fact that the market responded with a 7 percent gain reflects that investors assessed the amalgamation as value-neutral to mildly accretive, given that Horizon Packs and Securipax were already fully owned subsidiaries.
Business Overview
Established in 1962 and listed on both BSE and NSE, JK Paper Limited is India’s leading manufacturer of office papers, coated papers, and packaging boards, with plants at Fort Songadh (Gujarat) and Rayagada (Odisha).
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