Shares of small-cap Banganga Paper Industries, trading under ₹100, have captured investor attention following a significant corporate announcement. The company has declared a mandatory open offer to purchase its entire public shareholding, a move triggered by a larger strategic shift into the alcoholic beverages business.
The Open Offer Details
In a formal statement, Navigant Corporate Advisors, the manager to the offer, confirmed the details. The open offer is for acquiring 3,47,88,000 equity shares, which represents 100% of the company's existing public shareholding, at a fixed price of ₹1.45 per share. The offer size was set at the full public float because the incoming stakeholders' 26% share of the expanded capital would exceed the current public holding. Should all public shareholders accept, the total cash payout for this transaction would amount to ₹5.04 crore.
Strategic Shift: From Paper to Brewing
This open offer is a direct consequence of a board-approved preferential allotment made to new acquirers. The company agreed to issue 10,06,29,680 equity shares (30.42% of the emerging equity capital) largely in exchange for equity shares of CMJ Breweries Private Limited, also priced at ₹1.45 per share.
In a comprehensive exchange filing dated December 17, the board greenlit a series of transformative actions linked to this change in control. Key approvals include:
- Increasing the authorised share capital from ₹12 crore to ₹36 crore, pending shareholder nod.
- Acquiring a 78.90% equity stake in CMJ Breweries Private Limited via a share swap.
- Multiple preferential issuances:
- Up to 15,10,64,917 equity shares at ₹1.45 for non-cash consideration.
- 6,00,00,000 equity shares for cash at the same price.
- 2,20,00,000 convertible warrants.
- Changing the company's name to Asgard Alcobev Limited.
- Raising borrowing and investment limits to ₹500 crore.
- Selling its 99.96% stake in Banganga Paper Mills Limited for ₹11.21 crore.
- Shifting the registered office from Nashik, Maharashtra, to Shillong, Meghalaya.
An extraordinary general meeting (EGM) on January 14, 2026, has been scheduled to seek shareholder approval for these proposals.
Stock Performance and Market Position
The company's stock has experienced volatility. Over the longer term, it has declined 28% in the last year and 27% in the past six months. However, it has shown recent strength, gaining almost 9% in three months and 10% over one month.
Currently trading at ₹54.41, the scrip is approximately 50% below its 52-week high of ₹90.27 reached in March 2025. Its 52-week low of ₹38 was recorded in November 2025. The company's current market capitalisation is ₹651.05 crore.
Disclaimer: This news article is for educational purposes only. Readers are advised to consult with a certified investment advisor before making any financial decisions.
