On 29 March 2026, the board of EPL approved the merger of Indovida India Private Limited, a wholly owned subsidiary of Indorama Ventures, into EPL through an all-share transaction. Indorama will receive 286 EPL shares for every 10,000 Indovida shares, resulting in a 51.8% ownership in EPL post-merger. Blackstone Inc.’s stake is expected to dilute from ~26% as of March 2026 to ~16.6%.

Based on the transaction terms, Indovida is valued at an equity value of INR 62.6 bn and an enterprise value of INR 60.9 bn (7.5x LTM EBITDA of INR 8.1 bn as of 12/2025). EPL is valued at an equity value of INR 110.2 bn and an enterprise value of INR 116.2 bn (12.4x LTM EBITDA of INR 9.3 bn as of 12/2025).

In comparison, Blackstone had acquired a majority stake in EPL in April 2019 at an implied valuation of ~9x EV/EBITDA. On April 22, 2019, Blackstone announced that they entered into a definitive agreement with Ashok Goel Trust to purchase a majority stake (51%) in Essel Propack Limited (EPL), at INR 134 per share. The open offer price was fixed at INR 139.19 per share.

Indorama Netherlands B.V. acquired a significant minority stake (24.9%) in EPL in February 2025 at an implied valuation of ~10x EV/EBITDA. On February 24, 2025, Blackstone entered into a definitive agreement with Indorama Netherlands, B.V., a group entity of Indorama Ventures Public Company Limited. INBV acquired a minority stake of ~24.9% of EPL from Blackstone at a purchase price of INR 240 per share.

On a pro forma basis, the combined entity would have generated LTM revenue of INR 83.8 bn and EBITDA of INR 17.5 bn (20.9% EBITDA margin) as of December 2025.

The stated strategic rationale includes integration of flexible and rigid packaging capabilities, expansion in emerging markets, and cross-selling and cost efficiencies, with identified synergies of USD 35–50 million across revenue and costs.

The transaction is subject to regulatory and shareholder approvals and is expected to close by the end of FY2027.

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Analyst’s Position Disclosure: Anand Rawani holds shares of EPL. Date of last transaction: April 9, 2025. Transaction type: Buy. 

Detailed Disclosure and Disclaimers are available here: https://moatlane.com/investor-charter/