Welspun Enterprises (WEL), formerly Welspun Projects, part of the $2.3 billion Welspun Group, has completed the sale of its stake in Welspun Energy. Pursuant to the shareholders’ approval by way of postal ballot on February 01, 2017, WEL has divested its stake at a consideration of approximately Rs 286 crore. Further consideration is contingent upon occurrence of certain future events. This implies more than 3x returns on WEL’s investment of Rs 91.10 crore in Welspun Energy.
This deal is another step in the company’s business re-organization efforts, in order to create value for its stakeholders by enhancing focus on core businesses. This will further improve WEL’s balance sheet and cash reserve, thus setting a stronger platform for future growth.
Welspun Enterprises, formerly Welspun Projects, part of the Welspun Group, is an operating company in the infrastructure business. The company also has investments in Oil & Gas Exploration.
