Blackstone-backed Epsilon Bidco is offloading a 26.4% stake in packaging firm EPL Ltd through a block deal valued at approximately ₹1,985 crore. The offer price is set at ₹235 per share, a 10.3% discount to the recent market price. Investors are watching how the stock manages this large supply while the company pursues 'high teens' revenue growth targets.
Private equity firm Blackstone is reducing its investment in the specialty packaging company EPL Ltd. Through its affiliate, Epsilon Bidco, the firm plans to sell up to 26.4% of its equity in a block deal transaction. The sale involves approximately 8.45 crore shares offered at a price of ₹235 each. This price sits at a 10.3% discount compared to the stock's recent closing level of ₹261.70 on the Bombay Stock Exchange.
This divestment follows a strong start to the current fiscal year for the company. In the first quarter of fiscal year 2027, EPL reported a revenue of ₹1,388 crore, marking a 25% increase compared to the previous year. While the top-line growth remains strong, profit margins have seen some pressure. The company reported an EBITDA margin of 18.8% for the quarter. Management has communicated a target to reach a 20% EBITDA margin, despite the challenges posed by rising costs.
EPL is currently in an expansion phase, focusing on integrating its recent business acquisitions, including the merger with Indovida India Private Limited. Leadership, led by Global CEO Hemant Bakshi, has set an ambitious goal to reach $1 billion in annual revenue by early next year. They have also revised their revenue growth guidance to the 'high teens' percentage range. Achieving these targets will depend heavily on the company's ability to navigate supply chain risks and geopolitical tensions, particularly those originating from West Asia, which can impact raw material costs and delivery timelines.
For investors, the primary monitorable remains the company’s ability to turn its rapid revenue growth into consistent profit margins. While the block deal introduces a large volume of shares to the market, the long-term outlook for the stock will likely be driven by how well the management executes its expansion strategy and maintains efficiency during the integration of new business units. Shareholders may also track the company's commentary on how it plans to offset inflationary pressures in the coming quarters.