AGI Greenpac's Shares Plunge 19% After Supreme Court Rejects Hindusthan National Glass Resolution Plan

Kolkata, January 29 - AGI Greenpac Ltd shares plummeted as much as 19 percent on Wednesday, following the Supreme Court's rejection of the company's resolution plan for Hindusthan National Glass & Industries Ltd.

The stock currently trades at Rs 809, a decline of 13.90 percent from its previous close. The news has sent shockwaves through the market, with investors left uncertain about the future prospects of AGI Greenpac and its tie-up with Hindusthan National Glass.

The Supreme Court's rejection comes after the Kolkata National Company Law Tribunal (NCLT) passed the concerned order in October 2021, paving the way for the resolution plan to be implemented. However, it appears that AGI Greenpac had hoped to see its plan through.

AGI Greenpac's resolution plan, valued at Rs 2,213 crore, was previously approved by 98 percent of the Committee of Creditors of Hindusthan National Glass in October 2022. Despite this approval, the Supreme Court has now rejected the plan, leaving AGI Greenpac reeling.

In a call to analyst ahead of its Q3FY25 earnings report, CEO Sandeep Sikka hinted that the company has been working towards two alternative plans - Plan B and Plan C - which could be considered if its original acquisition plan fails. However, neither plan has been approved by the Board yet, leaving investors with little concrete to build on.

The rejection has resulted in AGI Greenpac's shares slumping, casting a pall of uncertainty over the company's future prospects. As the news sets off ripples throughout the market, investors are expected to remain cautious and monitor developments closely.

In related news, Hindusthan National Glass & Industries Ltd. stock price is also on the slide following the rejection of AGI Greenpac's resolution plan.