Welspun Corp, one of the largest large diameter steel pipe manufacturers in the world, will hold 51% and Wasco Energy will hold 49% in the joint venture company, the company said in release.
The capital expenditure for the project forms a part of FY15-16 planned capex of around Rs 200 crore, it added.
This venture will augment WCL’s offering to the market duly supported by Wasco’s strong credentials in concrete weight coating business globally.
The joint venture will provide WCL with the strategic advantage of becoming a one-stop solution for Steel Pipe Coating requirements to service all offshore requirements for the Oil & Gas industry. The joint venture will help both companies to reduce the time to market, whilst maintaining the technical excellence that Welspun is renowned for.
The stock hit a high of Rs 110 and has seen a combined 714,244 shares changed hands on the counter on the BSE and NSE.