WSTCSTPAPR.NSE News

The Competition Commission of India (CCI) greenlit on Tuesday ITC Limited’s acquisition of the paper and pulp manufacturing business of Aditya Birla Real Estate Limited (ABREL), clearing a key regulatory hurdle for the Rs 3,498-crore transaction.The approval covers the proposed transfer of ABREL’s pulp and paper undertaking at Lalkuan in Uttarakhand to ITC through a business transfer agreement. The divestment plan had been cleared by ABREL’s board in March this year and is now set to move into the execution phase following the antitrust watchdog’s clearance.Aditya Birla Real Estate had said earlier that the sale will allow the company to channel resources towards expanding its core real estate business. Managing Director R.K. Dalmia described the divestment as a strategic portfolio decision that unlocks value for shareholders and sharpens the company’s focus at a time when it is entering a phase of transformational growth. He added that the pulp and paper business had built a strong reputation for performance and sustainability, and that ITC was well placed to scale it further.Under the terms of the agreement, the consideration will be paid as a lump sum, subject to customary adjustments.

The analysts highlighted key technical levels for the sector, with JK Paper given short-term buy targets and TNPL and West Coast Paper seen approaching breakout zones.

On August 25, several paper stocks saw significant gains after the Indian government set a minimum import price for certain paper boards, with shares of Tamil Nadu Newsprint & Papers and JK Paper rising up to 17%. Other stocks also experienced jumps of up to 13%.

Indian paper stocks, including JK Paper and West Coast Paper Mills, are under scrutiny as the government plans to tighten controls on substandard paper imports, particularly from China. The Department for Promotion of Industry and Internal Trade is set to introduce a new Quality Control Order for various paper products. This is a developing story.