Welspun India perks up on pref allotment talk

DALAL STREET SPIKES

Welspun India stock witnessed volatile trades on news of preferential allotment to Tamasek. The stock, in intra-day was up 6.8 per cent to Rs 140 after the company approved a preferential issue of shares and warrants to Singapore-based private equity fund Temasek at Rs 130.25 per share.

More than 97,000 shares changed hands at the counter with the stock closing at Rs 130.05, marginally lower to yesterday's closing of Rs 131.

According to the deal, Welspun will issue 90.7 lakh equity shares to Dunearn Investments (Mauritius), a wholly owned subsidiary of Temasek. The company will also issue 16.8 lakh convertible warrants to Dunearn Investments.

The company's board has also approved a proposal for issuing 20.17 lakh convertible warrants to promoters at the same price of Rs 130.25.