1:1 BONUS SHARE: Plastic drums and composite cylinders manufacturer signs MoU with the promoters of Ebullient Packaging Pvt Ltd

On Monday, shares of Time Technoplast Ltd jumped 2.3 per cent to an intraday high of Rs 484.05 per share from its previous closing of Rs 473.15 per share. The stock’s 52-week high is Rs 513.35 per share while its 52-week low is Rs 301.80 per share.

Time Technoplast Ltd (TTL) has entered into a Memorandum of Understanding (MoU) to acquire a 74 per cent equity stake in Ebullient Packaging Private Limited (EPPL). The proposed acquisition, valued at an estimated enterprise value of approximately Rs 200 Crore, is part of TTL's strategy to expand its packaging portfolio and accelerate business growth. The acquisition is subject to a customary due diligence process, including financial, legal, and regulatory reviews, and is expected to be completed within 4 to 6 months.

EPPL is a significant player in the industrial packaging sector, specialising in products such as Flexible Intermediate Bulk Containers (FIBCs), polymer drums, and jerry cans. The company has a strong presence in Western India and a significant export business, particularly to Europe. By acquiring EPPL, TTL gains a crucial foothold in the high-growth FIBC market, which is projected to expand at a strong CAGR of 20 per cent in India. This move complements TTL's existing rigid packaging business, creating cross-selling opportunities and a more comprehensive product offering for customers.

The acquisition is expected to create strong synergies for both companies. For EPPL, it will provide access to TTL's extensive global customer base, enabling volume-driven cost efficiencies and enhanced operational agility. EPPL will also benefit from TTL's global manufacturing footprint and in-house R&D capabilities, which will support its growth and innovation. For TTL, the acquisition diversifies its portfolio, reinforces its leadership in industrial packaging, and aligns with its commitment to sustainability through EPPL’s reconditioning and refurbishing capabilities.

About the Company

Time Technoplast Ltd, a multinational conglomerate, leads the market in the manufacturing of plastic drums and composite cylinders. Their focus is industrial packaging, with a strong domestic presence and cost-plus pricing. While they also produce infrastructure, lifestyle, and automotive components, their high-growth value-added products are particularly noteworthy. Composite cylinders, a key innovation, are lighter, more durable, and safer than traditional metal options, positioning Time Technoplast for a strong future in the evolving energy landscape. The company’s total order book as of March 31, 2025, stands at Rs 805 crore.

The company has announced a proposal to issue bonus equity shares in a 1:1 ratio. This means for every one fully paid-up share held, shareholders will receive one additional bonus share and this is subject to shareholder and regulatory approvals, with the record date to be announced later. The company has a market cap of over Rs 10,000 crore and reported positive numbers in its Quarterly Results (Q4FY25) and annual results (FY25). The stock gave multibagger returns of 235 per cent in just 2 years whereas the BSE Sensex Index is up by 22 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.