Welspun Specialty Shares Hit Upper Circuit After Board Approves Rights Issue

Welspun Specialty Solutions Ltd.'s share price rose nearly 5% and hit the upper circuit limit on Tuesday, after the company’s board approved rights issue. The company plans to issue 13.25 crore equity shares, amounting to Rs 349.86 crore, with the rights issue price set at Rs 26.40 per share.

The record date for the rights issue has been revised to March 1, 2025, from the previously announced Feb. 27, 2025, in compliance with SEBI regulations.

The rights issue period will commence on March 10, 2025, and close on March 19, 2025. The on-market renunciation period is set from March 10 to March 13, 2025. Off-market renunciation must be completed in a manner that ensures the rights entitlements are credited to the demat account of the renouncee by the issue closing date.

Prior to the rights issue, Welspun Specialty Solutions had 53,00,89,156 equity shares outstanding. Assuming full subscription, the number of outstanding equity shares will increase to 66,26,11,445. The equity shares are being offered on a rights basis to eligible equity shareholders in the ratio of one equity share for every four equity shares held on the record date.

The funds raised through the rights issue are expected to support Welspun Specialty Solutions’ expansion plans and strengthen its financial position.

The scrip rose as much as 4.98% to Rs 41.71 apiece. It pared gains to trade 3.20% higher at Rs 41 apiece, as of 10:07 a.m. This compares to a 0.19% advance in the NSE Nifty 50.

It has risen 9.80% in the last 12 months. Total traded volume so far in the day stood at 4.7 times its 30-day average. The relative strength index was at 56.