Shares of EPL Ltd declined as much as 9.5% on Tuesday, September 1, following the execution of a significant block deal worth ₹2,253 crore. According to CNBC TV18, 9.15 crore shares changed hands at ₹246 per share in the block deal window, representing 30% of the company's outstanding equity. The transaction involved 24.5 lakh shares changing hands in two separate block deals, with the rest executed in a separate transaction. The official buyers and sellers in this transaction are not yet known.
Blackstone-backed Epsilon Bidco Pte Ltd had previously planned to sell its entire 26.4% stake in packaging solutions provider EPL Ltd through a block deal, valued at approximately ₹1,985 crore and involving 8.45 crore shares at an offer price of ₹235 per share. As reported by CNBC TV18, this represented a discount of up to 10.3% to EPL's prevailing market price, with shares currently trading at ₹262.06 on the NSE. The proposed transaction was announced on Monday, August 31, with sources confirming the deal structure. The execution of this block deal appears to have triggered the current market reaction.
As reported by CNBC TV18, at the end of the June quarter, promoter Epsilon Bidco Pte Ltd held 26.38% stake in EPL Ltd, while public shareholding comprised 73.62%. The current block deal execution represents a significant portion of the promoter's holding, though the exact breakdown of the transaction remains unclear. The substantial volume of shares changing hands in the block deal window has contributed to the current market volatility and the stock's decline.
According to CNBC TV18, EPL reported exceptional operating performance for Q1FY27, recording its highest-ever top-line growth of 25.3% with revenue reaching ₹1,388 crore, compared with ₹1,108 crore in the year-ago quarter. The company achieved its fifth consecutive quarter of double-digit revenue growth, with growth being broad-based across segments. Beauty & Cosmetics and Oral Care segments grew more than 20%, while all regions recorded double-digit growth. On an underlying basis, excluding raw-material price impacts, revenue growth stood at 20%. In August, EPL's MD and Global CEO Hemant Bakshi raised the company's near-term revenue growth guidance from low double digits to high teens, supported by strong performance across oral care and beauty and cosmetics segments.
As reported by CNBC TV18, EPL's EBITDA rose 15.2% year-on-year to ₹261 crore from ₹227 crore, marking the company's 15th consecutive quarter of double-digit EBITDA growth. EBITDA margin stood at 18.8%, while the underlying EBITDA margin was 19.6%. The company successfully passed on the entire increase in costs through pricing across regions. Profit after tax declined 1.4% year-on-year in Q1FY27, but the company attributed this to a lower effective tax rate in the corresponding quarter of the previous year, which it expects to normalize over the full year. Bakshi expects to maintain underlying EBITDA margin of around 20% and is confident about sustaining high-teens growth.
According to CNBC TV18, shares of EPL are trading 9.1% lower on Tuesday at ₹238.1, with this fall trimming the stock's year-to-date advance down to just 10%. The significant market reaction appears linked to the block deal execution and the substantial volume of shares changing hands. Bakshi expects the company's proposed merger to generate $35-50 million in synergies over the coming years and said EPL could become a $1 billion revenue company early next year once the merger is completed. The company has successfully passed on additional costs arising from the West Asia crisis and expects to maintain strong performance across all segments.
