Multibagger GKP Printing to issue bonus shares, acquire group entity

After the approval of the issue of bonus equity shares, GKP Printing and Packaging is looking to buy a stake or acquire one of its group entities for strategic alliance and growth of the business.

On Tuesday, the company informed the exchanges that the company board is scheduled to meet on Monday, August 8 to consider investing or buying a stake in M/s Packwell Enterprises LLP.

Earlier to this, the company board had approved the issuance of bonus shares in a 1:2 ratio, which means that investors will get one fully paid equity share of the company for every two fully paid shares held.


Following the development, shares of GKP Printing and Packaging rallied to Rs 256.25 on Wednesday, before trading at Rs 256.55 at 1:16 p.m.

For the purpose of the bonus issue, the company board of directors have approved increasing the authorized share capital of the company to 2.2 crore equity shares of Rs 10 each from the existing 1.5 crore equity shares of the same face value.

The company will also tweak the Memorandum of Association as per provisions of the Companies Act, 2013. However, all these steps are subject to shareholders' approval.

Maharashtra-based GKP Printing & Packaging is engaged in the manufacturing of corrugated boxes, including master cartons, mono cartons, honeycomb partition boxes, die-cut self-locking boxes, storage bins, unit cartons and more.

The company is also engaged in the trading of kraft paper, duplex paper and low-density plastic rolls. GKP Printing & Packaging has been aggressive on expansion lately.

Its client base includes Tata Consultancy Services, Spectra International, Naaptol, ShopCJ, SM Foods, Almats Branding Solutions, among others.