JK Paper Limited has informed the Exchange about Effectiveness of Scheme of Arrangement
JKPAPER · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
JK Paper Limited's composite scheme of arrangement, sanctioned by the NCLT Ahmedabad Bench on 3rd February 2026, has become effective from 15th March 2026 after filing with the Registrar of Companies. Three of the company's wholly-owned subsidiaries — JKPL Utility Packaging Solutions, Securipax Packaging, and Horizon Packs — have been amalgamated into JK Paper, with effect from the appointed date of 1st April 2024. The non-paper undertaking of subsidiary Enviro Tech Ventures Limited (ETVL) has been demerged into PSV Agro Products, making PSV Agro an associate company with JK Paper holding 31.12% equity. ETVL's residual business, including its investment in listed Sirpur Paper Mills (SPML), has been amalgamated into JK Paper, making SPML a direct wholly-owned subsidiary. JK Paper's authorised share capital is being increased from Rs. 500 crore to Rs. 1,226.47 crore, and equity shares will be issued to eligible ETVL shareholders as per the share exchange ratio in the scheme.
This restructuring simplifies the group structure, brings Sirpur Paper Mills directly under JK Paper, and divests the non-core agro business, which could improve operational clarity. However, existing shareholders may face equity dilution as new shares will be allotted to ETVL shareholders per the exchange ratio; the share price reaction will depend on the final swap ratio and investor perception of the simplified structure.