Sellwin & Patel Container India Strategic Alliance

Mumbai, Nov 26 (PTI) Sellwin Traders on Wednesday said it has entered into a strategic association with Patel Container India and formalised a share-swap agreement for 36 per cent investment in a container manufacturing project in Gujarat.

The move follows an earlier Memorandum of Understanding signed last year, under which both companies agreed to explore collaboration for the development of PCIPL's container manufacturing facility, an exchange filing said.

Patel Container India Pvt Ltd is presently executing the project on leased land located near Bhavnagar, designated exclusively for establishing the manufacturing unit.

Sellwin Traders has agreed to invest 36 per cent of the project valuation into PCIPL and the investment will be executed through a share swap mechanism, under which PCIPL shall allot equity shares representing the 36 per cent stake to Sellwin, the filing stated.

In return, Sellwin will issue its own equity shares to PCIPL or its nominated entities at price not below Rs 15 per share.

The filing stated that for the project, State Bank of India has sanctioned a term loan of Rs 20 crore which forms a key component of the overall Project financing structure, alongside promoter contribution and the proposed investment from Sellwin.