The board of Welspun Enterprises has approved raising funds via a preferential allotment of 1.90 crore warrants at a price of Rs 525 to promoter Balkrishan Goenka and several public shareholders, totalling up to Rs 1,000 crore, the company informed on October 15.
Shares of the company were higher by over 8 percent in the trading session, extending early gains following the announcement.
The preferential issue of shares is on private placement basis in one or more tranches, subject to regulatory approvals, and shareholder nod for the same will be sought on November 7 through in Extra-Ordinary General Meeting. Among the non-promoter, public shareholders who will be allotted shares include Authum Investment, among others. The warrants are convertible into one fully paid-up equity share before the expiry of 18 months from the date of allotment, the company said.
Welspun Enterprises, with a market capitalisation of over Rs 7,900 crore, operates in the infrastructure space, focused on road and water sectors, with investments in oil and gas.
The company has been focusing on expanding into high-value segments such as tunnelling, wastewater treatment and large-scale water delivery systems, where it sees "strong demand and attractive opportunities", driven by rapid urbanization.
Welspun Enterprises is targetting to deliver revenue of Rs 4,000-4,100 crore in FY26, which around 15 percent more than the revenue reported in FY25. The company had given a guidance which is more skewed towards H2FY26 revenue. The management has said in the past that almost 93 percent of its FY26 revenue is covered by existing orders.
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