EPL promoter Epsilon to sell 24.9% stake to Indorama for ₹1,907 crore; stock falls

Epsilon Bidco Pte. Ltd., the promoter entity of EPL, has signed share purchase agreements to sell another 24.9% stake in the company, this time to Indorama Netherlands B.V., EPL’s exchange filing stated on Monday, February 24.Indorama will purchase 7.94 crore shares or 24.9% of the total equity at a price of ₹240 per share, which is almost at par with EPL’s closing price on Friday.

The total consideration for this transaction is ₹1,907 crore. Indorama will become a minority shareholder in EPL post this transaction.

Based on this transaction, Indorama will be entitled to appoint one nominee director on the board of EPL and its committees and will also have a say in matters like change in capital structure, merger, demerger, disposition of company assets, among other segments.Epsilon currently holds a 51.45% stake in EPL at the end of the December quarter.

In April 2019, EPL, known back then as Essel Propack, had announced a ₹3,211 crore deal by selling out to Blackstone. Promoters sold stake for ₹2,157 crore, while Epsilon acquired 26% stake worth over ₹1,000 crore.

Epsilon had earlier offloaded 23% stake in EPL in September 2020 by selling 1.8 crore shares at ₹256.44 via block deals, majority of which were acquired by domestic and overseas funds.

Shares of EPL have opened 2.5% lower on Monday at ₹231.6. The stock is down 20% from its peak of ₹289.