JK Paper Limited has announced that the Hon'ble National Company Law Tribunal (NCLT), Ahmedabad Bench, has sanctioned its composite scheme of arrangement. This scheme involves the amalgamation of JKPL Utility Packaging Solutions Private Limited, Securipax Packaging Private Limited, and Horizon Packs Private Limited into JK Paper Limited (the Transferee Company). Additionally, the scheme includes the reduction and conversion of Redeemable Preference Shares of Enviro Tech Ventures Limited into an unsecured loan. Enviro Tech Ventures Limited's demerged undertaking will be transferred to PSV Agro Products Private Limited (the Resulting Company), followed by the amalgamation of Enviro Tech Ventures Limited into JK Paper Limited. The re-organization of reserves of JK Paper Limited post-effectiveness is also part of the scheme. The NCLT pronounced its order sanctioning the scheme on February 3, 2026. The scheme will become effective upon the filing of the certified copy of the order with the relevant Registrar of Companies. The rationale behind the amalgamation includes consolidating packaging businesses for efficient utilization of assets and supply chains, eliminating intra-group transactions, rationalizing the corporate structure, and reducing compliance costs. The scheme also aims to reflect the true nature of investments by converting preference shares into unsecured loans and facilitating the demerger. The re-organization of reserves is intended to right-size the balance sheet and present a fair financial position.
