- Vipul Mathur plans to sell Welspun shares worth Rs 1,417.5 crore via block deal
- The block deal represents 2.4% of company equity at Rs 2,250 per share price
- Welspun Corp shares fell 2.64% to Rs 2,345.5 while Nifty 50 gained 0.48%
Shares of Welspun Investments And Commercials are expected to remain in focus as promoter and MD & CEO Vipul Mathur plans to sell shares through a block deal worth more than Rs 1,400 crore.
According to sources, the total offer size for the block deal is Rs 1,417.5 crore, representing 2.4% share of the company's equity. The total offer price is set at Rs 2,250 per share, around 4.1% discount from the current market price. The remaining stake will be subject to a 90-day lock-in period.
Welspun Corp shares closed 2.64% lower at Rs 2.345.5 apiece on Tuesday, August 25, while the benchmark Nifty 50 ended 0.48% up.
Welspun Corp is a global steel pipe manufacturer, serving oil and gas, water and infra end-markets globally. It operates integrated plants across India, US and Saudi Arabia.
The development comes after the company bagged order worth $1.8 billion, or approx. Rs 17,200 crore, for the supply of pipes from its manufacturing facility in the United States of America.
The order will be executed between FY 2028 & FY 2029, Welspun Corp said in a regulatory filing on August 20.
Following this order, the company's global order book stands at a record $4.4 billion (~ Rs 42,100 crore) — the highest in its history.
“The North American energy infrastructure market continues to present significant opportunities, and our investments in capacity, technology and customer relationships have positioned us well to capture this growth. With strong multi-year visibility and a robust order book, we are confident of sustaining the momentum and further strengthening Welspun Corp's leadership position in this important market,” said Vipul Mathur, Managing Director & CEO, Welspun Corp.
In Q1FY27, the company's net profit jumped 42% year-on-year (YoY) to Rs 499 crore, driven by strong operating leverage. It saw one-time gain of Rs 548 crore from EPIC stake sale. Revenue grew 15% YoY to Rs 4,081 crore, while EBITDA in the June quarter increased 35% YoY to Rs 756 crore, while EBITDA margin improved by 270 bps to 18.5%.
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