Welspun plans to raise Rs 500 crore by issuing NCDs
Textile business Welspun India, part of Welspun Group, plans to issue non-convertible debentures on commercial papers on a private placement basis to raise Rs 500 crore.
The Mumbai-based textile business’ board meeting on February 23, “approved raising of funds, by way of the private placement, up to Rs 500 crore, inter alia, by issuing NCDs or commercial papers, subject to the approval of the shareholders,” said the business, the Press Trust of India reported.
Welspun India’s parent company Welspun Group operates in numerous business sectors including home textiles, steel, oil and gas, infrastructure, and line pipes, among others. The business reported a drop in net profit of 25% year-on-year in the recent third financial quarter which ended in December, 2021. The business cited rising costs and logistics issues as the reason and reported revenue growth in numerous sectors.
Welspun India’s Easygo Textiles business was also one of the four businesses to bid on bankrupt textile business Sintex Industries Limited along with Reliance Industries Limited (in partnership with Assets Care and Reconstruction Enterprises Limited), GHCL, and Himatsingka Ventures (in partnership with Shrikant Himatsingka and Dinesh Kumar Himatsingka).
Sintex’s lenders plan to decide in the resolution next week and either restart the resolution process or put the four plans to vote.
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