Sintex Plastics Technology today said its subsidiary Sintex BAPL has received a capital commitment of up to Rs 1,250 crore through structured finance from private equity fund KKR India and its affiliates.
The investment will fuel Sintex’s aggressive growth plans as it continues to rapidly shift its business model towards B2C/retail segment, the company said in a statement.
“The investment of Rs 1,250 crore by KKR India and its affiliates in Sintex Plastics Technology’s subsidiary Sintex BAPL, is considered as one of the largest in the manufacturing sector in recent times,” the release added.
It further said the proceeds will be utilised to refinance existing debt and fund the company’s growth in the B2C business, further capitalising on the Sintex brand for high-margin value-added product categories in the retail plastics division as well high-end auto and defense plastics product category.
The company has also nominated KKR’s Tashwinder Singh on the board of Sintex BAPL.
“This partnership with KKR will go a long way in nourishing our retail business and custom molding business globally,” said Amit Patel, managing director, Sintex Group.
KKR and affiliates have funded the company’s retail expansion and to incorporate high value added items in the company’s auto plastics business, the release said.
ICICI Securities Primary Dealership was the transaction advisor for the deal.
Source : moneycontrol.com