Welspun shares up 10% on bourses

Tags: News
Shares of pipe maker Welspun Corp Ltd (WCL) today soared by 10 per cent after the company decided to exit from its joint venture with Leighton Group.

Welspun's scrip surged 9.99 per cent to close the day at Rs 64.4 -- its upper circuit limit on the BSE.

At the NSE, the stock rose by 9.67 per cent to close the day at Rs 64.65.

Welspun Corp has decided to exit from its joint venture with Leighton Group by selling its entire 39.88 per cent stake for a net cash consideration of USD 99 million (Rs 614 crore).

The company has entered into a pact with Leighton Group to sell the stake its subsidiary Welspun Infra Projects Pvt Ltd (WIPPL) had in Leighton Welspun Contractors India Pvt Ltd (LWIN), WCL said in a statement today.

"With this sale, LWIN will be renamed as Leighton India," it said, adding, the decision to exit LWIN was aimed at repositioning itself in the infrastructure space.

WCL had in 2011 acquired 35 per cent stake in LWIN for cash consideration of Rs 470 crore to cash in on opportunities in the Indian infrastructure sector especially Public-Private- Partnership projects. It bought additional stakes in the firm subsequently in a cash-less transaction worth Rs 115 crore.

In the broader market, the BSE benchmark Sensex ended at 21,143.01, down 50.57 points.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Amit Shah deserved to be crowned President of India, some say

    The Bharatiya Janata Party is now firmly in the hands of Modi’s alter ego, which in plain English means ‘another side of oneself, a second self’

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Necessary yet inadequate boost to education

The finance minister, in the very first minutes of his ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture