Welspun Projects was locked at 10% upper circuit at Rs 11.51 at 11:24 IST on BSE after the company announced plans to consolidate its shareholding in Leighton Welspun Contractors by selling 7.5% stake in the latter for a consideration of Rs 81 crore.
The announcement was made after market hours on Tuesday, 24 December 2013.
Meanwhile, the S&P BSE Sensex was up 52.92 points or 0.25% at 21,085.63.
On BSE, so far 12,000 shares were traded in the counter as against average daily volume of 3,466 shares in the past one quarter.
The stock hit a low of Rs 10.90 so far during the day. The stock had hit a 52-week high of Rs 25 on 7 January 2013. The stock had hit a record low of Rs 7.81 on 30 October 2013.
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The stock had outperformed the market over the past one month till 24 December 2013, surging 26.14% compared with the Sensex's 4.03% rise. The scrip had also outperformed the market in past one quarter, jumping 16.2% as against Sensex's 5.58% rise.
The small-cap infrastructure development company has equity capital of Rs 40 crore. Face value per share is Rs 10.
Welspun Projects said that in order to consolidate the shareholding in Leighton Welspun Contractors (LWIN), the board of directors of the company at its meeting held on Tuesday, 24 December 2013, decided to transfer 1.15 crore equity shares of Rs 10 each owned by the company, comprising of 7.5% of issued, subscribed and paid up share capital of LWIN to its associate company on mutually agreed terms, subject to requisite approvals. Further it has been decided to assign the agreement to sell and adjustment agreement both dated 5 March 2013 entered into with LWIN, along with the obligation to the said associate company. The net cash consideration receivable post the completion of transaction is Rs 81 crore, Welspun Projects said.
Welspun Projects reported a consolidate net loss of Rs 18.12 crore in Q2 September 2013, higher than net loss of Rs 5.05 crore in Q2 September 2012. Net sales declined 4.5% to Rs 51.83 crore in Q2 September 2013 over Q2 September 2012.
Welspun Projects is an infrastructure company engaged in the execution of infrastructure projects in highways, bridges, industrial, residential and commercial buildings.
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