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Welspun Group company Welspun Corp. Ltd has acquired 1,128 crore of debt of Sintex BAPL (SBAPL), known for its plastic water tanks, for 386.9 crore, it said on Friday.

The debt in the form of senior secured unlisted non-convertible debentures (NCDs) was acquired by the company’s wholly-owned subsidiary Mahatva Plastic Products And Building Materials Pvt. Ltd from existing Lenders of SBAPL. “These NCDs have an exclusive pledge of over 100% equity shares of SBAPL along with First & PariPassu charge on the movable fixed assets of SBAPL," it said.

“Welspun Corp. Ltd is desirous of working harmoniously with other lenders of Sintex BAPL Ltd to resolve the insolvency situation of SBAPL at the earliest in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016," it said.

Welspun now owns around one-third of the total outstanding debt of the company, said a person aware of the development on the condition of anonymity. The move highlights Welspun Group’s interest in reorienting its business from predominantly business-to-business models to more consumer facing businesses, the person said.

The group is scouting for various investment and acquisition opportunities in relevant business-to-consumer areas, the person said.

The acquisition of Sintex’s debt also reflects the group’s increased appetite for merger and acquisition.

The company had also participated in the insolvency resolution process of Sintex group’s textile business Sintex Industries.

In February, Welspun Corp managing director and chief executive Vipul Mathur had told Mint that it is expanding the ambit of its businesses to make them more consumer-centric.

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