This is an excerpt from Welspun’s Investors Report…
"As you are all aware, we submitted
our bid in the CIRP process under a consortium. The acquisition cost for the consortium was
INR 1,251 crores. For the plastic product business, which WCL has acquired, the acquisition
cost is INR 1,141 crores. There was a cash in the company and the subsidiary of Sintex-BAPL
to the extent of INR 735 crores, which was utilized for this particular transaction. Thus, the net
implied cost for WCL for this national iconic brand, Sintex is close to INR 406 crores only
Even in the CIRP process when the company was into stress, the company has been
EBITDA positive and cash positive. At its peak in FY '19, the revenue for the plastic product
business was close to INR 1,000 crores and the EBITDA was in the vicinity of INR 220 crores
with an EBITDA margin of 22%."
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