Welspun Gujarat to buy 75% stake in MSK Projects

Excerpts from India Business Hour on CNBC-TV18 Watch the full show » RELATED NEWS Buy Welspun Gujarat, says Sukhani Buy Welspun India, says Anu Jain Dipali Goenka: Using home making skills at Welspun Retail Welspun Gujarat wins order worth Rs 600cr ALSO READ See latest News about Welspun Guj See previous management interviews See what other Experts & Brokerages are saying about Welspun Guj

Welspun Gujarat has okayed the acquisition of MSK Projects, reports CNBC-TV18. It plans to acquire 75% stake in the latter. The deal size is Rs 400 crore, and this is to be funded entirely through internal accruals.

Welspun Infratech, a 100% subsidiary of Welspun Gujarat Stahl Rohren and part of the USD 3 billion Welspun group, has signed an agreement to acquire a majority stake in construction major MSK Projects India.

Welspun targets to acquire about 75% stake through a combination of share purchases from promoters, associates, investors, preferential allotment and open offer. The company plans to make a mandatory open offer to the shareholders of MSK Projects.

Commenting on the same, BK Goenka, CMD, Welspun Group, said, "We have a proposal to go ahead with 65% to 75% stake. All depends on how much we get in the open offer. With promoters and full allotment, we will be above 55% once everything is clear as per SEBI norms."

In a block deal yesterday, 31 lakh MSK Projects shares changed hands on the BSE at Rs 130.50 per share. Nearly 14.99% of MSK Projects' equity changed hands.