Welspun Corp has sold Plate and Coil Mill Division (PCMD) and 43 MW Power Division for around Rs 940 crore. The sale consideration for PCMD is Rs 848.5 crore, and closing adjustments pertaining to Net Current Assets as of Closing Date (expected to be around Rs 25 crore), taking the total expected consideration to Rs 873.5 crores. The 43 MW Power Division is being sold at Rs 66.9 crore.
PCMD and 43 MW Power Division have been identified as noncore assets and the Company has entered into agreements to divest these. The Company periodically reviews its business strategy and as a part of that, has decided to focus on its core assets and look at strategic options for non-core assets, so as to keep its operations asset-light.
Welspun Corp is currently in four businesses viz. Line Pipes, Energy, Infrastructure & Steel and enjoys a global leadership position in the first two businesses. It may be recalled that Welspun Corp is already in advanced stages of demerging the parts of its business other than Line Pipes into Welspun Enterprises through a court process.
