Apollo to invest up to Rs2,250 crores in Welspun Group
29 Jun 2011
Global private equity firm Apollo Global Management plans to invest up to Rs2,250 crores in various subsidiaries of India's Welspun Group, of which about Rs 1,305 crore would be in the listed firm Welspun Corp Ltd (WCL).
The $3 billion conglomerate, Welspun Group is into manufacturing of line-pipe and home textiles and presence in over 50 countries. It has a marquee client list that includes Chevron, Exxon Mobil, Wal-Mart and Target among others.
Welspun Corp's board and group firms - Welspun Maxsteel Ltd (WMSL) and Welspun Infratech Ltd (WITL) - have agreed to accept Apollo'sinvestment proposals in meetings held on 29 June 2011, Welspun Corp said in a statement to the stock exchange.
The boards of these firms have viewed this transaction as a "positive, landmark event", it said, adding, the transactions are expected to close on or before August 12, 2011.
WCL is pipe manufacturer, WMSL is a producer of gas-based Direct Reduced Iron (DRI) and WITL, which is a subsidiary of WCL, offers construction and infrastructure services.
As a part of the plan, funds affiliated with Apollo will invest Rs1,305 crore in WCL, of which Rs788 crore will be invested by way of a preferential allotment of Fully Convertible Debentures (FCDs) and Compulsorily Convertible Debentures (CCDs) and Rs517 crore by way of Global Depository Receipts (GDR).
