Vaibhav Global executes agreement for acquisition of majority stake (60%) in Encase Packaging

24 Jan 2022 , 12:42 PM

Vaibhav Global Limited announced on Sunday the successful execution of Share Subscription and Shareholders’ Agreements for acquisition of a majority stake of 60% in Encase Packaging Private Limited. The purchase consideration of Rs4cr has been determined and the same has been financed through internal accruals and cash balances. The acquisition will be completed in approximately 2 months.

The company said in a filing that based out of Sri City in Andhra Pradesh, Encase Packaging is engaged in the business of manufacturing and trading of all kinds of packaging material. Currently, VGL is largely dependent on sourcing packaging material from China for its jewellery products. Hence, this acquisition will further strengthen our supply chain network providing requisite flexibility and cost advantage.

Vineet Ganeriwala, Group CFO, Vaibhav Global Limited, said, “We welcome Encase Packaging as a part of VGL Group. The acquisition will further consolidate our existing integrated supply chain and give substantial saving in packaging cost of jewellery products. Besides this will also strengthen our efforts towards developing a sustainable packaging for our products”

At around 12.45 pm, Vaibhav Global Ltd was trading at Rs521.55 per share down by Rs13.85 or 2.59% from its previous closing of Rs535.40 per share on the BSE.