Welspun promoters buy foreign partner's stake; shares soar

Promoter group companies of Welspun have acquired the entire 3.12 per cent stake held by foreign partner Mulheim Pipecoatings in the group flagship Welspun Corp for Rs 70.46 crore, sending the share price of the pipe company soaring by nearly 14 per cent.
"Welspun Infra Developers Limited and Welspun Fintrade Private Limited being part of Welspun Promoter Group have acquired the entire equity shareholding held by Mulheim Pipecoatings GmbH (a co-promoter) in Welspun Corp, constituting 3.124 per cent equity shareholding in Welspun Corp Limited," Welspun Corp said in a BSE filing.
Mulheim Pipecoatings GmbH is a German entity.
The filing said the acquisition was done at a "per share price of Rs 85.25 per equity share, by way of a block deal on the designated trading window of the Bombay Stock Exchange".

According to the BSE block deal data, Welspun Infra Developers bought 52.15 lakh shares, while Welspun Fintrade bought 30.50 lakh shares. As per the data, the whole transaction is valued at Rs 70.46 crore.
The promoter holding in Welspun Corp is 38.21 per cent for the quarter ended March, 2014.

Share price of Welspun Corp surged nearly 14 per cent at Rs 98 on the BSE after the deal was announced.
Intra-day, it soared 16.6 per cent to Rs 100.40 -- its 52-week high.
At NSE, the stock settled at Rs 97.10, up 12.19 per cent.
In terms of volume, 100.26 lakh shares of the company changed hands at the BSE, while over 42 lakh shares were traded at the NSE during the day.