Welspun Corp jumps 12% after acquisition of Sintex BAPL NCDs

New Delhi: Welspun Corp zoomed as much as 12 per cent during the early trade on Friday following the acquisition of non-convertible debentures (NCDs) of Sintex BAPL (SBAPL).

The manufacturer of large diameter pipes, via its wholly owned subsidiary, has acquired senior secured unlisted NCDs for Rs 386.9 crore from the existing lenders of SBAPL.

The acquired NCDs have an exclusive pledge of over 100 per cent equity shares of SBAPL along with first and Pari-Passu charge on the movable fixed assets of SBAPL.


Following the business update, shares of Welspun Corp jumped about 12 per cent to Rs 186.7, before giving up some gains to trade at Rs 183.25 per cent. The scrip was closed at Rs 167.45 on Thursday.

Pari-passu charge, a Latin term meaning 'equal footing', is a financing arrangement that gives multiple lenders equal claim to the assets used to secure a loan.

If the borrower is unable to fulfil the payment terms, the assets can be sold, and each lender receives an equal share of the proceeds at the same time.

Ahmedabad based SBAPL has three major business lines including plastic products, Indian Custom molding (ICM) and BR Rototech – Fuel Tanks for the auto sector.

BSE's benchmark index, Sensex, was trading 181.70 points or 0.31 per cent higher at 58,750.21 at the time of writing this report.

Earlier this week, Welspun Corp, the flagship company of Welspun Group, announced that its associate company, East Pipes Integrated Company for Industry received an order of $132 million from Saline Water Conversion Corporation.