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Welspun Enterprises surges on selling 37% equity stake in DBCL for Rs 662 crore

23 Dec 2015 Evaluate

Welspun Enterprises is currently trading at Rs. 56.55, up by 4.80 points or 9.28% from its previous closing of Rs. 51.75 on the BSE.

The scrip opened at Rs. 55.10 and has touched a high and low of Rs. 59.40 and Rs. 55.10 respectively. So far 59563 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 79.10 on 05-Aug-2015 and a 52 week low of Rs. 24.60 on 21-Jan-2015.

Last one week high and low of the scrip stood at Rs. 54.00 and Rs. 47.95 respectively. The current market cap of the company is Rs. 896.93 crore.

The promoters holding in the company stood at 37.56% while Institutions and Non-Institutions held 17.13% and 37.34% respectively.

Welspun Enterprises has entered into a definitive agreement with India Infrastructure Fund-II, an alternate fund sponsored by IDFC. As per this agreement, the company sold 37% equity stake in Dewas Bhopal Corridor (DBCL), a 50% Joint Venture of the company at an enterprise value of Rs 662 crore (including a contingent deferred consideration of Rs 34 crore million and debt of Rs 317 crore). The above transaction has strengthened the company’s financial capabilities by increasing the cash and reducing net debt by nearly Rs 282 crore.

Consequently, the company still owns 13% equity stake in DBCL, which can be transferred within 2 years, subject to approval of Madhya Pradesh Road Development Corporation (MPRDC). Ernst and Young acted as advisor for DBCL.

Welspun Enterprises (WEL), formerly Welspun Projects, part of the Welspun Group, is an operating company as well as a holding company in the business of Infrastructure, Oil & Gas Exploration and Renewable Energy.

Welspun Enterprises Share Price

479.10 13.15 (2.82%)
17-Apr-2026 12:02 View Price Chart
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