Welspun Corp hits life high on receiving ₹476 cr from reducing stake in arm

Welspun Corporation shares rose 2.3 percent in the morning deals, logging an all time high at ₹900 per share. The buying on the counter came after the company received ₹476.39 crore on completing the transaction with a strategic investor for a 74 per cent equity stake in its wholly-owned subsidiary, Nauyaan Shipyard (NSPL)

 

However, around 10 AM, Welspun Corp share price pared some gains and was up 0.74 per cent at ₹886.05 per share on BSE. In comparison, the BSE Sensex was up 0.74 per cent at 77,477.73. The market capitalisation of the company stood at ₹23,114.29 crore. The 52-week high of the stock was at ₹900 per share and the 52-week low was at ₹441 per share. 

"Further to our disclosure dated March 20, 2025, pertaining to induction of a strategic investor with 74 per cent equity shares in wholly-owned subsidiary viz. Nauyaan Shipyard Private Limited (NSPL), we are now pleased to inform you that the transaction has been completed today and the company has received ₹476.39 crore (₹382.73 crore towards equity and ₹93.66 crore towards dues)," the filing read.

 

Post the stake sell, NSPL has ceased to be a subsidiary of Welspun and has become an associate of the company. Welspun will use the surplus cash from the transaction including existing Treasury, to reduce Debt, and to pre-pay around ₹1,000 crore of Debt before March 31, 2025. 

 

As a part of this plan, the company has today pre-paid Debt of ₹725 crore and will continue to focus on further reduction of Debt and Finance costs.

 

As on December 31, 2024, the company’s consolidated net debt was at ₹104 crore, according to its filing. 

 

About Welspun Corporation  

Welspun Corp Ltd. is an Indian multinational company that is part of the Welspun Group, a conglomerate involved in various sectors including textiles, steel, infrastructure, and energy. Welspun Corp is primarily known for manufacturing steel pipes and tubes, which are used in the energy, oil, and gas sectors, as well as for infrastructure projects. They are one of the largest manufacturers of welded pipes globally.

 

Known for its technological advancements, Welspun Corp produces high-quality, large-diameter pipes with state-of-the-art coatings for anti-corrosion protection. The company has a strong focus on sustainability, investing in clean energy and water conservation practices. Part of the Welspun Group, the company operates globally with manufacturing plants in India and the US, and its products are used for a wide range of applications, including pipelines for oil and gas transmission, water systems, and industrial projects.

 

In the past one year, Welspun Corp shares have gained 71 per cent against Sensex's rise of 6 per cent.