Asia-Pacific-focused investment firm PAG, which acquired a majority stake in Manjushree Technopack, India’s largest rigid plastic packaging solution company, may lead the much-awaited initial public offering (IPO), said a media report in the financial press quoting sources.
Other reports said Manjushree Technopack has received the final observation from the Securities and Exchange Board of India (SEBI) for the IPO, for which it had submitted its draft red herring prospectus to the market regulator on 20 August 2024.
The deal to acquire Manjushree Technopack for Rs 8,400 crore (approximately US$ 1 billion), as reported by Packaging South Asia, will be PAG’s third billion-dollar deal this year and the largest it has done in India.
The US-based private equity investor, Advent International, will divest its 97% stake in the company to the Hong-Kong-based PAG. Advent currently holds 97% of the company while 3% is held by other public shareholders.
Advent, which was seeking an exit since early this year, had filed for a ₹3000-crore IPO in which it aimed to sell ₹2250 crore. After the PAG deal, there was initial speculation if the IPO would be out in the backburner.
Manjushree Technopack was established in 1979 and started its plastic container manufacturing operations in Bangalore in 1987. It has 20 plants across India for manufacturing plastic bottles and jars and PET hot-fillable bottles and pre-forms used by the food, beverages, pharmaceutical, cosmetic, agricultural chemicals, automotive lubricants, and numerous other consumer and industrial segments.
The company says that its clients number over 110,000. It reported a revenue of Rs 2,130 crore in FY24, which is up from its reported revenue of Rs 2,096 crore in FY 2023 and RS 1,474 crore in FY22. It has an annual installed capacity of plastic containers and related materials of approximately 213,000 metric tons.
