Welspun Ent stock soars over 12% on selling stake in road JV

Welspun Enterprises shares soared over 12 per cent today as the company divested 37 per cent stake in its joint venture firm Dewas Bhopal Corridor for Rs 662 crore.
The stock surged 12.17 per cent to settle at Rs 58.05 on BSE. During the day, it soared 14.78 per cent to Rs 59.40.
At the NSE, shares of the company jumped 12 per cent to end at Rs 57.85.
"Welspun Enterprises entered into a definitive agreement with India Infrastructure Fund, the IDFC-sponsored fund. As per the agreement, the company has sold 37 per cent equity stake in Dewas Bhopal Corridor Pvt Ltd (DBCL), a 50 per cent joint venture of the company, at an enterprise value of Rs 6.62 billion," Welspun Enterprises said in a BSE filing.

The enterprise value of Rs 6.62 billion includes a contingent deferred consideration of Rs 34 crore and debt of Rs 317 crore.
"The company still owns 13 per cent equity stake in DBCL, which can be transferred in two years subject to approval of Madhya Pradesh Road Development Corporation Ltd," it added.