Moneycontrol
Last Updated : Dec 26, 2016 10:24 AM IST | Source: Moneycontrol.com

Welspun Enterprises rises 6%, to sell 15.49% in Welspun Energy

The company has, subject to the approval of the members of the company, approved sale of its entire investment of 6,04,93,342 equity shares (15.49 percent) in the paid up equity share capital of Welspun Energy.

 
 
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Shares of Welspun Enterprises advanced 6.5 percent intraday Monday as it is going to divest its stake in Welspun Energy.

The company has, subject to the approval of the members of the company, approved sale of its entire investment of 6,04,93,342 equity shares (15.49 percent) in the paid up equity share capital of Welspun Energy.

"As against its investment of Rs 91.1 crore, the stake is proposed to be sold to Welshop Trading, for a consideration of approximately Rs 290 crore plus contingent consideration, thereby implying more than 3x returns to the company on its investment," as per company release.

In addition to buying out Welspun Enterprises' stake, Welshop Trading, part of Welspun Group, has agreed to buy out the stake of other shareholders in Welspun Energy at equivalent consideration.

Sandeep Garg, Managing Director, Welspun Enterprises said, “With this transaction, the company continues its journey of consolidation and value creation for all its stakeholders by enhancing focus on core businesses."

"This deal will further improve our balance sheet and cash reserve, which has set a stronger platform for future growth," he added.

At 10:03 hrs Welspun Enterprises was quoting at Rs 61.75, up Rs 2.25, or 3.78 percent on the BSE.

Posted by Rakesh Patil
First Published on Dec 26, 2016 10:24 am
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