Ruchira Papers - Low downside high upside

Stock Opportunities
42

Looks like the fortunes of paper industry is improving. Paper prices are substantially higher than what they were in mid 2020.

Ruchira promoters have passed a resolution to allot warrants to themselves at Rs 62/warrant, which when converted to equity shares will increase their shareholding from the current level of 64.07% to 67.88%.

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Does Ruchira Paper has its own Pulp plant or does it rely on the imports of the same.

The rationale of asking this question is that as the pulp prices have increased tremendously, the companies which have their own pulp plants are going to benefit and others might see their margins reduce drastically.