Shares of one of India’s fastest-growing infrastructure firm gained 1.5 percent in early trading on Friday after its board approved to Purchase Stake in Michigan Engineers Ltd.
At 12:37 p.m. Welspun Enterprises Ltd shares were trading at Rs 237.50 a share on the National stock exchange, down 0.84 percent from previous close price and the company has a market capitalization of Rs 3,286 crore.
As per company’s exchange filing, Welspun Enterprises Ltd has signed a Share Purchase Agreement with Authum Investment & Infrastructure Limited, Sansaar Housing Finance Limited, and Michigan for the purchase of a 50.10% stake or 8,69,596 equity shares in Michigan for a cash consideration of Rs 137.07 crore.
Michigan will become a subsidiary of Welspun Enterprises Limited upon completion of the acquisition. The acquisition is aligned with Welspun Enterprises strategy to grow the water infrastructure business segment and enable its entry into the tunnelling business, as well as enable the company to undertake projects relating to segment tunnelling,micro tunnelling and sewer network rehabilitation.
Welspun Projects Ltd is an infrastructure company that also invests in the oil and gas sector.The company develops mass housing and townships, multi-story buildings, industrial projects for coal mines, petrochemicals, and water retention structures.
The company’s stock has returned 68 percent in six months and 138 percent in a year.
The income of Welspun Enterprises increased by 97 percent from Rs 1,401 crore in FY 21-22 to Rs 2,758 crore in FY 22-23. Net profit climbed by 480 percent within the same period, from Rs 125 crore to Rs 726 crore.
The net profit margin ratios of the welspun enterprise have climbed from 8.94 percent to 26.35 percent, and the return on equity has increased from 6.96 percent to 40.35 percent.
As per latest shareholding pattern,The promoters own 54.53 percent of the company, while retail investors possess 36.14 percent.
Written by Omkar Chitnis
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