Welspun Corp Limited updates on Sintex BAPL Ltd

Welspun Corp Limited had earlier announced about the acquisition of Sintex BAPL Ltd.'s ("SBAPL") senior secured unlisted non-convertible debentures by its wholly-owned subsidiary viz. Mahatva Plastic Products And Building Materials Private Limited ("MPPBMPL").

SBAPL is currently undergoing the corporate insolvency resolution process under the provisions of the Insolvency and Bankruptcy Code, 2016. In continuance of the announcements referred above, Welspun Financial Services Limited ("WFSL") has subscribed to security receipts worth approx. INR 122.26 Crores Only, issued by Asset Reconstruction Company (India) Limited ("ARCIL"), which has been issued on the basis of the underlying debt securities of SBAPL. For providing co-operation to MPPBMPL, WFSL has entered into a business co-operation agreement with MPPBMPL on July 27, 2022. In turn, MPPBMPL has agreed to provide (a) pledge over its Senior Secured Unlisted Non-Convertible Debentures to the extent of INR 150 Crores Only ("NCDs") in favour of lenders of WFSL; (b) an exclusive charge over cash flows pertaining to such NCDs; and (c) a shortfall undertaking for servicing of the debt owed by WFSL to its lenders.

WFSL and MPPBMPL are related parties.

Shares of Welspun Corp Limited was last trading in BSE at Rs. 213.10 as compared to the previous close of Rs. 210.35. The total number of shares traded during the day was 185306 in over 4369 trades.

The stock hit an intraday high of Rs. 220.05 and intraday low of 207.60. The net turnover during the day was Rs. 39797624.00.

Source : Equity Bulls

Keywords

WelspunCorp INE191B01025 WELCORP SintexBAPL