Jindal Poly Films (JPFL) has signed an agreement for the sale of a minority stake in its packaging films business to Brookfield Asset Management, which, through its Special Investments program (BSI), and together with institutional partners (collectively ‘Brookfield’), has agreed to make an Rs 2,000 crore investment in the company. The transaction will result in JPFL carving out its packaging films business, which generates approximately 85% of its total revenue, into a wholly owned subsidiary in which BSI will hold a minority stake. JPFL will continue to own its non-woven business unit and other corporate assets.
The structured equity investment in JPFL consists of compulsory convertible preference shares and equity shares of the new subsidiary, giving BSI a 25% stake and downside protection through a ratcheted equity structure tied to financial performance. BSI has also entered into an investor rights agreement.
Jindal Poly Films is a part of the diversified B C Jindal group. The group has interests in flexible packaging, photographic products, thermal power generation and steel products. JPFL has the world’s single largest site for production of BOPP and BOPET films at Nasik, India.
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| Arvind | 388.85 |
| K.P.R. Mill | 907.15 |
| Page Industries | 36527.45 |
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