New Delhi, Mar 30 (IANS): Propel Plastic Products Private Limited, a wholly owned subsidiary of Welspun Corp Limited (WCL), has discharged the consideration to the creditors of Sintex-BAPL Limited for an amount aggregating Rs 1,251 crore in the form of upfront cash in terms of the approved resolution plan.
Pursuant to the implementation of the Approved Resolution Plan, Propel has merged with SBAPL with effect from March 29, 2023, Welspun Corp said in a filing to stock exchanges.
Consequent to the merger, SBAPL has allotted equity shares to the shareholders of Propel viz., WCL in accordance with the Scheme of Arrangement provided under the Approved Resolution Plan.
Resultantly, SBAPL has become the wholly owned subsidiary of WCL with effect from March 29, 2023.
As required under the Approved Resolution Plan, upon re-constitution of SBAPL's Board of Directors, SBAPL has executed a Business Transfer Agreement (BTA) and hived-off its Auto Business to Plastauto (i.e. other Consortium Member and a Related Party of WCL) for an overall lump-sum consideration of Rs 110 crore and as per the terms of the Approved Resolution Plan. The Effective date for BTA is March 29, 2023.
Earlier this month, Welspun Corp had announced the acquisition of Sintex-BAPL Limited by Propel Plastic Products Private Limited, a wholly owned subsidiary of Welspun Corp Limited and Plastauto Private Limited, earlier known as Tubular Pipes Private Limited, a related party of WCL.