SBI Ventures into Paper Packaging with ₹49.99 Crore Investment in Canpac Trends

State Bank of India (SBI) has recently made a strategic move into the paper packaging industry by investing ₹49.99 crore in Canpac Trends Private Limited, an Ahmedabad-based company specializing in paper-based packaging solutions.

Transaction Details

In an exchange filing, SBI disclosed the execution of transaction documents to acquire 6.35% (3,70,644 shares) of Canpac Trends at ₹1,349 per share. The total investment amounts to ₹49.99 crore.

Objective of Investment

SBI’s investment in Canpac Trends is driven by the objective of capital appreciation, emphasizing the potential growth and profitability of the paper packaging sector.

Acquisition Timeline

The indicative period for the completion of the acquisition is set at three months from the date of executing the transaction documents.

Canpac Trends Overview

  • Canpac Trends Private Limited, established in 2004, operates in the paper packaging industry.
  • The company offers diverse paper-based packaging solutions, including folding cartons, corrugated cartons, flexible packaging, paper bags, and luxury boxes.

Financial Performance (Year Ended March 2023)

  • In the fiscal year ending March 2023, Canpac Trends reported a total income of ₹389.72 crore.
  • The net profit for the same period was recorded at ₹9.82 crore.

Important Questions Related to Exams

Q: What prompted SBI to invest ₹49.99 crore in Canpac Trends?

A: SBI invested in Canpac Trends for capital appreciation in the paper packaging sector.

Q: What percentage of Canpac Trends does SBI now own?

A: SBI acquired 6.35% (3,70,644 shares) of Canpac Trends for ₹49.99 crore.

Q: What is the indicative timeline for the acquisition’s completion?

A: The acquisition is expected to conclude within three months from the execution of transaction documents.

Q: What are Canpac Trends’ key offerings in the paper packaging industry?

A: Canpac Trends specializes in folding cartons, corrugated cartons, flexible packaging, paper bags, and luxury boxes.

Q: How did Canpac Trends perform in the fiscal year ending March 2023?

A: In FY 2022-2023, Canpac Trends reported a total income of ₹389.72 crore and a net profit of ₹9.82 crore.

 

 

Piyush Shukla

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