This is a regulatory disclosure made by Shreenath Paper Products Limited to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

The disclosure informs about the incorporation of a new entity, Shreenath Paper Industries Private Limited, under the provisions of the Companies Act, 2013. This action is in furtherance of the company's earlier intimation dated May 30, 2026, regarding exploring Joint Venture opportunities.

Shreenath Paper Products Limited has subscribed to 50% of the paid-up equity share capital of Shreenath Paper Industries Private Limited. The subscription was made in cash consideration at the face value of the shares. Consequently, Shreenath Paper Industries has become an Associate Company of Shreenath Paper Products Limited.

Details of the Associate Company (Shreenath Paper Industries Private Limited)

  • Name: Shreenath Paper Industries Private Limited
  • Authorized Share Capital: INR 10,00,000
  • Paid-up Share Capital: INR 10,00,000
  • Turnover: Not applicable, as it is a newly incorporated company.
  • Industry: Manufacture of Paper Products
  • Country of Incorporation: India
  • Background: Newly incorporated company with no prior business operations or turnover.

Transaction Details

  • Nature of Consideration: Cash
  • Cost of Acquisition / Price: Subscribed at face value per equity share
  • Percentage of Shareholding Acquired: 50% of the paid-up equity share capital

Objects of the Acquisition

The primary object is for the new associate to carry on the business of manufacturing and dealing in all kinds of paper, board, and paper and board products and conversions. The extensive list of intended products includes writing paper, printing paper, absorbent paper, blotting paper, filter paper, antique paper, ivory-finish paper, coated paper, art paper, bank or bond paper, kraft paper, corrugated paper, paper board, paste board, cardboard, and various other analogous or connected articles.

Regulatory and Governance Aspects

  • The incorporation was done under the Companies Act, 2013.
  • No separate governmental or regulatory approval was required for the subscription of shares.
  • At the time of incorporation, the transaction is not a related party transaction. Shreenath Paper Industries became a related party (an Associate) only after the company subscribed to its shares. The promoter/promoter group has no interest in the entity except to the extent of the shareholding in Shreenath Paper Products Limited.

The financial impact of the transaction is the cash outflow equivalent to 50% of the INR 10,00,000 paid-up capital, which is INR 5,00,000.