Sintex-BAPL Ltd, a subsidiary of Sintex Plastics Technology Pvt. Ltd, on Thursday said private equity fund KKR India and its affiliates have agreed to invest Rs1,250 crore in the company.
Sintex-BAPL is part of the Ahmedabad-based textiles and plastics manufacturer Sintex Group which was de-merged in May last year.
The company said it will use the money to refinance debt and finance growth in the B2C business in retail plastics and auto and defence plastics. It will also be used to improve cash flows and augment brand building, the company said in a statement.
Amit Patel, group managing director said, “KKR infusion is a measure of confidence in our group. I believe the partnership with KKR will go a long way in nourishing our retail business and custom molding business globally. We welcome KKR onboard and we both will partner for long term value creation for our stakeholders”. KKR has nominated Tashwinder Singh to the board of Sintex-BAPL.
The structured finance transaction, advised by ICICI Securities Primary Dealership Ltd, conserves cash flows as well as aligns the investor with the growth strategy of the company, the statement said.
Sintex Plastics Technology was hived off from Sintex Industries and listed separately last year. Sintex Industries now holds the group’s textile business.
Sintex Plastics Technology on Wednesday reported a net loss of Rs12.49 crore for Q4 March 2018 as compared to net profit to Rs51.84 crore in Q3 December 2017. The company’s total revenue fell to Rs1,293 crore as compared to Rs1,333 crore in the previous quarter.
This article was first published on livemint.com.