Genus Paper & Boards Ltd Completes Disinvestment of Wholly Owned Subsidiary GPCL for Rs. 11.86 Crore

Genus Paper & Boards Ltd has completed the disinvestment of its entire equity stake in wholly owned subsidiary Genus Paper and Coke Limited (GPCL) on March 06, 2026. The transaction marks a significant corporate restructuring move as GPCL ceases to be a subsidiary of the company. Transaction Details The disinvestment involves the complete sale of Genus Paper & Boards Ltd's 100% equity stake in GPCL, comprising 20,00,000 equity shares of Rs. 10 each. The transaction has been executed for a total consideration of Rs. 11,86,40,000 (Rupees Eleven Crores Eighty Six Lakhs Forty Thousand Only). Transaction Parameter: Details Shares Divested: 20,00,000 equity shares of Rs. 10 each Sale Consideration: Rs. 11,86,40,000 Transaction Date: March 06, 2026 Completion Date: March 06, 2026 Buyer Information and Related Party Nature The buyer of the GPCL stake is Hi-Print Electromack Private Limited, which is identified as a promoter entity of Genus Paper & Boards Ltd. This classification makes the transaction a related party transaction under regulatory guidelines. The company has confirmed that the transaction has been conducted at arm's length pricing based on a professional valuation report. GPCL's Financial Contribution During the last financial year FY 2024-25, GPCL made modest contributions to the parent company's overall financial performance. The subsidiary's financial metrics demonstrate its relatively small scale within the group structure. Financial Metric: Amount (Rs. in Crore) Contribution (%) Revenue: 14.24 1.65% Net Worth: 22.35 4.34% Regulatory Compliance The disinvestment has been announced in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided comprehensive disclosures as required under SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The transaction does not fall under any scheme of arrangement, and compliance with regulation 37A of LODR Regulations is not applicable. Additionally, the transaction is not structured as a slump sale, making related amalgamation or merger disclosures unnecessary. Impact on Corporate Structure With the completion of this disinvestment, GPCL has ceased to be a wholly owned subsidiary of Genus Paper & Boards Ltd effective from March 06, 2026. The transaction represents a strategic corporate restructuring decision, transferring the subsidiary to the promoter group while maintaining it within the broader business ecosystem. Genus Paper & Boards Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showcasing strong operational performance across both standalone and consolidated metrics. The Board of Directors approved these results at their meeting held on February 13, 2026, with the company subsequently publishing a public notice in newspapers on February 16, 2026. Standalone Financial Performance The company delivered robust standalone results for Q3FY26, demonstrating significant improvement across key financial metrics. Revenue from operations reached ₹22,070.86 lakh, while the company achieved a net profit of ₹212.64 lakh for the quarter. Metric: Q3FY26 Q3FY25 Growth (%) Revenue from Operations: ₹22,070.86 lakh ₹20,960.79 lakh +5.30% Net Profit: ₹212.64 lakh ₹157.21 lakh +35.27% Earnings Per Share: ₹0.08 ₹0.06 +33.33% Nine-Month Performance Highlights The nine-month period ending December 31, 2025, showed exceptional growth momentum with substantial improvements in profitability metrics. The company's revenue from operations for the nine-month period increased to ₹71,397.01 lakh compared to ₹62,602.41 lakh in the corresponding period last year. Parameter: 9M FY26 9M FY25 Growth (%) Revenue from Operations: ₹71,397.01 lakh ₹62,602.41 lakh +14.08% Net Profit: ₹1,077.91 lakh ₹494.91 lakh +117.77% Earnings Per Share: ₹0.42 ₹0.19 +121.05% Consolidated Results Performance The consolidated financial results, which include the wholly owned subsidiary Genus Paper and Coke Limited, demonstrated strong performance with net profit of ₹288.24 lakh for Q3FY26 compared to ₹54.31 lakh in Q3FY25. Total consolidated income reached ₹23,754.86 lakh for the quarter. Consolidated Metrics: Q3FY26 Q3FY25 Change (%) Total Income: ₹23,754.86 lakh ₹21,327.96 lakh +11.38% Net Profit: ₹288.24 lakh ₹54.31 lakh +430.71% Earnings Per Share: ₹0.11 ₹0.02 +450.00% Segment-wise Business Performance The company operates through multiple business segments with paper business being the primary revenue contributor. For Q3FY26, the paper business generated revenue of ₹22,070.86 lakh with a segment result of ₹1,290.73 lakh. The coke business through the subsidiary contributed revenue of ₹1,683.99 lakh, though it reported a segment loss of ₹5.69 lakh. Corporate Structure and Compliance As of December 31, 2025, the company has one wholly owned subsidiary, Genus Paper and Coke Limited. The financial results have been prepared in accordance with Indian Accounting Standards prescribed under Section 133 of the Companies Act, 2013. The statutory auditors Jethani & Associates have completed the limited review as required under Regulation 33 of SEBI Listing Regulations and issued an unqualified review report. The company published the public notice of these results in newspapers, fulfilling its regulatory disclosure obligations. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. 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