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Commercial Syn Bags hit an upper circuit of 2% to Rs 82.29 after the company's wholly owned subsidiary, Comsyn India, entered into a share purchase agreement (SPA) with Erawat Vegcap, a wholly owned subsidiary of Erawat Pharma, on 12 April 2025.

Commercial Syn Bags rises after signing agreement to acquire Erawat Vegcap

15-Apr-2025, 12:08
Erawat Vegcap, incorporated on 7 April 2022, currently has two object clauses in its Memorandum of Association but has not commenced any business operations to date. The company is positioned in the plastic products & packaging and pharmaceutical & healthcare sectors. This acquisition is seen as a strategic move, aligning with Comsyn India's broader goals of business expansion, diversification, and value creation.

Under the terms of the agreement, Comsyn India will acquire 950,000 equity shares of Erawat Vegcap, each with a face value of Rs 10, at a price of Rs 52.60 per share, totaling a transaction value of Rs 49,970,000.

An initial payment of Rs 12,492,500 (25% of the total consideration) will be made upfront, against which 237,500 shares (25%) will be transferred. The remaining 712,500 shares (75%) will be transferred upon payment of the balance amount on or before 15 May 2025.

The transaction involves the 100% acquisition of Erawat Vegcap's equity shares, effectively making it a wholly owned subsidiary of Comsyn India upon completion.

The acquisition is not classified as a related party transaction, and none of the promoters, promoter groups, or group companies of Commercial Syn Bags have any direct or indirect interest in the entity. The acquisition is expected to be completed on or before 15 May 2025.

Upon completion of the deal, Erawat Vegcap will become a wholly owned subsidiary of Comsyn India, with Commercial Syn Bags as the ultimate holding company.

The official announcement was made on Saturday, 12 April 2025.

Comsyn, based in Indore, Central India, is a leading manufacturer of FIBC, tarpaulins, woven sacks, and BOPP bags. The company is part of the Choudhary Group, a diversified business conglomerate with a legacy of over 50 years. With more than three decades of industry experience, Comsyn has established a strong global customer base spanning all six continents.

The company reported a consolidated net profit of Rs 3.52 crore in Q3 FY25 as against a net loss of Rs 0.25 crore posted in Q3 FY24. Revenue from operations jumped 21.7% YoY to Rs 86.49 crore reported in the quarter ended 31 December 2024.