Welspun Corp Ltd acquires Sintex BAPL Ltd's NCDs

Welspun Corp Ltd has announced the acquisition of Sintex BAPL Ltd.'s (SBAPL) Senior Secured Unlisted Non-Convertible Debentures having a face value of Rs. 100,000 each (the "NCD") with an outstanding of Rs. 1128.8 Crore for a purchase price of Rs. 386.9 Crore by the wholly-owned subsidiary viz. Mahatva Plastic Products And Building Materials Private Limited ("MPPBMPL") from existing Lenders of SBAPL. These NCDs have an exclusive pledge of over 100% equity shares of SBAPL along with First & PariPassu charge on the movable fixed assets of SBAPL. The above acquisition of NCD is not a related party transaction.

SBAPL is a company incorporated in India having its registered office in Ahmedabad with 3 major lines of business viz. 1) Plastic Products (PP) - Water Tanks, Interiors & Institutional Products; 2) Indian Custom molding (ICM) - Automobile plastic molded parts; and 3) BR Rototech - Fuel Tanks for Auto. Before getting into financial stress, SBAPL achieved a turnover of ~Rs. 1,700 Crore in FY '19 with an EBITDA of ~Rs. 270 Crore (16.1% Margin).

Sintex is a household brand with a pan-India presence in the B2C segment with a wide sales & distribution network including 847 distributors and 13,000 retailers.

SBAPL is currently undergoing the corporate insolvency resolution process under the provisions of the Insolvency and Bankruptcy Code, 2016. Welspun Corp Limited is desirous of working harmoniously with other lenders of Sintex BAPL Limited to resolve the insolvency situation of SBAPL at the earliest in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.

Shares of Welspun Corp Limited was last trading in BSE at Rs. 167.45 as compared to the previous close of Rs. 162.45. The total number of shares traded during the day was 207015 in over 2225 trades.

The stock hit an intraday high of Rs. 168.90 and intraday low of 160.45. The net turnover during the day was Rs. 33958027.00.

Source : Equity Bulls

Keywords

WelspunCorp INE191B01025 WELCORP Acquisition SintexBAPL NCDs ExistingLenders