Welspun Specialty hits 5% upper circuit; here's what's boosting rally

Welspun Specialty Solutions will offer 13,25,22,289 rights equity shares for an amount aggregating to Rs 349.86 crore.

Welspun Specialty Solutions shares hit a 5 per cent upper circuit in trade on BSE at Rs 41.71 per share. The stock was in demand after the company board approved raising funds up to Rs 350 crore by way of a rights issue.

 

Around 9:47 AM, Welspun Specialty Solutions Ltd share price was up 4.98 per cent at Rs 41.71 per share on BSE. In comparison, the BSE Sensex was up 0.39 per cent at 74,741.87. The market capitalisation of the company stood at Rs 2,211 crore. The 52-week high of the stock was at Rs 58.9 per share and the 52-week low was at Rs 30.68 per share.

 

"This is further to the meeting of the Board of Directors of the Company (the “Board”) held on January 27, 2025, approving the issuance of equity shares of the Company (the “Rights Equity Shares”) for an amount not exceeding Rs 350 crore, by way of a rights issue," the filing read.  READ: Stock Market Updates LIVE

 

The company will offer 13,25,22,289 rights equity shares for an amount aggregating to Rs 349.86 crore. The rights issue price is set at Rs 26.4 per rights equity share. The record date for the rights issue is set as March 1, 2025. The offer will open on Monday, March 10, 2025, and will close on Wednesday, March 19, 2025. 

 

"The Rights Equity Shares are being offered on a rights basis to Eligible Equity Shareholders in the ratio of 1 (One) Equity Share(s) for every 4 (Four) Equity Shares held on the Record Date," the filing read. 

 

Welspun Specialty Solutions produces various Alloy Steel grades through the Electric Arc Furnace (EAF) and Ladle Refining Furnace (LRF) VD route, with a heat size of 35 tons. Stainless Steel is produced through EAF/EF, LRF, VD, and AOD/VOD routes. The products are cast through both, the continuous cast, as well as the ingot route.

 

The company's precision rolling mill downstream, has a capacity of 125,000 MT annually, catering to a wide size range of 45 mm to 300 mm Rounds and 55 to 340 mm RCS (Round Corner Squares).

 

It offers bars in Hot Rolled, Heat Treated, and Peeled & Polished conditions for all critical applications.

 

In the past one year, Welspun Specialty shares have gained 6.4 per cent against Sensex's rise of 2.2 per cent.