Rs 350 crore investment: This multibagger iron & steel company signs MoU with State Government of Telangana!

The stock gave multibagger returns of 110 per cent in just 6 months whereas BSE Industrials Index is up by 47 per cent.

Welspun Corp Limited informed that its wholly owned subsidiary Sintex BAPL has entered into an MOU with the state government of Telangana to set up a manufacturing unit in the state with up to Rs 350 crore investment.

The proposed project is under the state government’s incentive scheme and will be manufacturing water tanks and pipes. Along with growing its market reach in the water tanks segment, Sintex, a national iconic brand, plans to make its foray into the pipes business through this project, which will have a mix of different types of PVC pipes and fittings.

The total investment will spread over the next three financial years. The project design is at an early stage and the initial investment will not exceed Rs 50 crore on land and infrastructure in the current financial year (FY24). More details regarding this will be shared in due course.

Commenting on the development, Welspun Group Chairman, B. K. Goenka said, “As a group, we have been running our operations in the state already and this project will create further employment in the state. Sintex is an iconic brand for its water tanks and foray into the PVC pipes segment will strengthen our presence into the building material verticals further.”

Also read: Vijay Kedia gains Rs 4,83,31,875 from this multibagger penny stock below Rs 100 in just 21 days with robust order book worth Rs 2,961 crore; Do you own it?

On Wednesday, shares of Welspun Corp gained 0.28 per cent to Rs 399.90 per share from its previous closing of Rs 398.80 per share. The company has a market cap of over Rs 10,000 crore and has been maintaining a healthy dividend payout of 36.7 per cent.

Welspun Corp Ltd. is one of the flagship companies of Welspun Group. It is a leading manufacturer of large-diameter pipes globally, offering a one-stop solution for all line pipe-related requirements with its wide range of high-grade line pipes. 

The stock gave multibagger returns of 110 per cent in just 6 months whereas BSE Industrials Index is up by 47 per cent. Investors should keep an eye on this Mid-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.