Welspun Corp demerges unit

Mumbai-based Welspun Corp today said it has demerged Welspun Infra Enterprises from Welspun Corp and renamed it as Welspun Enterprises. The demerged firm will focus on steel, infrastructure, oil and gas exploration and energy.

The existing company Welspun Corp will solely focus on pipes and plates business in India and globally, it said in a release.

The demerger will create a mirror shareholding across both entities resulting in no dilution for any of the existing shareholders, it said.

"We believe that the demerger will create two focused, independently run companies with enhanced value creation across each business. We are committed to all of our businesses. The demerger will better enable the management team to protect, grow and nurture each line of business in a more distinct manner, bring more clarity on each business to pursue its strategic objectives and enhance shareholder value," said B K Goenka, Chairman, Welspun Corp Ltd.

Welspun Corp shares rose 2.63% in the morning trade.