Oricon to sell Murbad plant to Guala Closures for Rs 42.5 crore

Mumbai, August 8, 2025 – Oricon Enterprises Ltd (NSE: ORICONENT | BSE: 513121) has entered into a Business Transfer Agreement (BTA) with Guala Closures (India) Pvt Ltd for the slump sale of its metal crown seals and roll-on pilfer-proof closure business at the Murbad (Thane) plant. The deal is on a going-concern basis and will need shareholder approval through postal ballot, as well as regulatory approvals.

Stock Performance

As of 1:37 pm IST on August 8, the stock was trading at ₹55.04, up ₹1.28 (2.38%) from the previous close, after opening at ₹53.76 and hitting a high of ₹57.50 and a low of ₹53.27, with a market cap of ₹864.39 crore, a P/E ratio of 5.67, no dividend yield, and a 52-week range of ₹26.67 to ₹57.50.

Transaction Highlights

The Murbad unit recorded turnover of ₹110.46 crore in FY25 and contributed 20.75% of the consolidated revenue of Oricon and had a net worth of ₹44.12 crore (5.46% consolidated net worth). The transaction, which is expected to close on or before December 7, 2025 (subject to condition precedents), values the business at ₹42.50 crore enterprise value, subject to closing adjustments.

The business unit on sale consists of Oricon’s metal packaging business-manufacturing, trading, and sale of crown and ROPP closures-while Guala specializes in bottle closures, ensuring that the fit is operationally complementary. Oricon has made it clear that the sale is not to a related party and is to unlock value and redirect resources to higher-growth domains.

Earlier Performance and Strategic Expansion

Oricon’s manufacturing presence spreads across Murbad, Goa, Khopoli, and Khurda (Odisha), packaging and petrochemical segments, with distribution in more than 40 countries.

The company has done divestitures earlier like the sale of its plastic closures preform business to Manjushree Technopack in 2024 as part of its portfolio optimization.

Investor Takeaway

For shareholders, this divestiture is portfolio optimization of a mature asset-Selling a mature asset to reinvest funds into more sustainable margin or growth opportunities. With the contribution of the Murbad unit no longer showing up in earnings after closure, future trends in profitability and cash flows will be more readable. Keep an eye out for redeployment of proceeds to strengthen Oricon’s core packaging or petrochemical businesses catering to diversified industry sectors.

REF:https://nsearchives.nseindia.com/corporate/ORICON_08082025122520_Slump_Sale_intimation_to_Stock_ExhangeSigned.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations