New Delhi, April 3 -- EPL Ltd's recently announced merger with Indovida is not just another expansion, but a shift in the business model. The transaction is structured as a share-swap, making it largely cash-neutral, where EPL will issue shares to Indovida shareholders.

The deal values EPL at about Rs.339 per share, implying a 70% premium to its pre-announcement closing price on 27 March, while Indovida is being acquired at a discount to EPL's valuation multiple. Thus, the transaction is expected to be EPS-accretive from the first year itself.

EPL is the world's largest laminated tube manufacturer, supplying one out of every three toothpaste tubes globally, along with packaging for cosmetics, pharma and food products. Until now, EPL was...