BSE listed Welspun Corp Limited, a leading global pipe manufacturer, said US based private equity major, Apollo Global Management, will invest around INR 2,250 crore in the company to buy 20.3% stake in the firm.

As per report, Apollo and its affiliates are also in active discussions with Welspun Infratech, a subsidiary of WCL, to explore an investment of up to INR 675 crore in WITL in the form of debt, equity or a combination of the two.

The transaction, the USD 70 billion Apollo’s second investment in India, is expected to close on or before August 12.

Mr Joshua Harris managing partner and cofounder of Apollo Global Management said “Welspun represents a leading global franchise that operates at the intersection of energy and metals.”

As a part of the investment plan Apollo will invest INR 1,305 crore in WCL. Of this sum, INR 788 crore will be invested by way of a preferential allotment of fully convertible debentures or compulsorily convertible debentures FCD/CCDs. Another INR 517 crore will be invested by way of non voting global depository receipts GDRs. The FCDs/CCDs will carry an interest rate of 5% and will be mandatory converted within 18 months into equity shares of INR 225 per share.

Mr Akhil Jindal director group corporate affairs at Welspun Group said “The holding via debentures will give Apollo a 13.3% stake in WCL. The non voting GDR’s will also be issued at INR 225 per share equivalent and will represent around 8% stake.”

(Sourced from MyDigitTraffic.com)