This steel company, one of the leading manufacturers of large diameter pipes globally came into focus after selling 74 percent stake in its wholly owned subsidiary to Reliance Strategic in a Rs 383 crore deal.
Stock Performance
With a market capitalization of Rs 23,102.49 crore, Welspun Corp Ltd rose over 2 percent on Friday and made an intraday high of Rs 892.25 per share compared to its previous closing price of Rs 871.55 per share. The shares reiterated from the day’s high and were trading at Rs 880.60 which is 1 percent higher than the previous close.
What Happened
Welspun Corp had sold 100 percent of its stake in Nauyaan Tradings Private Limited (NTPL) to Reliance Strategic Business Ventures Limited for a consideration of Rs 1,00,000. Post this deal, NTPL is no longer a subsidiary of Welspun corp
Further the company announced the sale of a 74 percent stake in its wholly-owned subsidiary, Nauyaan Shipyard Private Limited (NSPL), to NTPL, which is now under Reliance Strategic, for Rs 383 crore.
Additionally, NSPL will repay Rs 93.66 crore in dues to Welspun Corp. With a total enterprise value of Rs 643.78 crore and debt at Rs 126.57 crores, NSPL’s equity stands at Rs 517.21 crore. After the transaction, Welspun Corp will retain a 26 percent stake, making NSPL an associate company instead.
Company Overview
Welspun Corp Limited specializes in manufacturing steel and plastic products. The company produces and coats high-grade submerged arc welded pipes, hot-rolled steel plates, and coils. Welspun’s manufacturing facilities are strategically located in over 50 countries including India, the United States, and Saudi Arabia.
Financial Performance
According to the latest quarterly report, the company reported a 24 percent decline in revenue from Rs 4,750 crore in Q3 FY24 to Rs 3,614 crore in Q3 FY25. The net profits however, saw a sharp increase of 129 percent from Rs 294 crore to Rs 672 crore during the same period.
Written by Shwetha Sairam
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