New Delhi: Welspun Enterprises Ltd (WEL) is looking to divest its entire 15.49 per cent stake in Welspun Energy.
"The board of directors of the company, subject to the approval of the members of the company, has approved sale of its entire investment of 60,493,342 equity shares representing 15.49 per cent in the paid up equity share capital of Welspun Energy," Welspun Enterprises Ltd (WEL) said in a filing to BSE.
Post sale of its renewable business, WEL's 15.49 per cent minority stake in Welspun Energy does not contribute to the consolidated results of the company, the filing said.
In order to unlock value for the company, the Board authorised the monetisation of this stake, subject to shareholders' approval, it added.
As against its investment of Rs 911 million, the stake is proposed to be sold to Welshop Trading Pvt Ltd, for a consideration of approximately Rs 2.9 billion plus contingent consideration, thereby implying more than 3x returns to the company on its investment.
In addition to buying out WEL's stake, Welshop Trading Pvt Ltd, part of Welspun Group, has agreed to buy out the stake of other shareholders in Welspun Energy at equivalent consideration.
The services of both PwC and EY were engaged for this transaction. Khaitan & Co was the joint legal advisor.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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