Rs 15,000 Crore Order Book: Iron & Steel Company Sold 10 Per Cent Equity Stake In Nauyaan Shipyard Private Limited; Details Inside
The stock is up by 75 per cent from its 52-week low of Rs 441 per share and has given multibagger returns of over 1,000 per cent in 5 years.
Welspun Corp Limited's Board of Directors has approved the sale of an additional 10 per cent equity stake in its subsidiary, Nauyaan Shipyard Private Limited (NSPL), to Nauyaan Tradings Private Limited, a wholly-owned subsidiary of Reliance Strategic Business Ventures Limited. The consideration for this transaction is Rs 51.72 crore, subject to potential adjustments for expenses and net current assets. Furthermore, NSPL will repay Rs 2.91 crore in dues to Welspun Corp. Upon the completion of this sale, which is expected on April 11, 2025, Welspun Corp will retain a 16 per cent equity stake in NSPL.
As of March 31, 2024, NSPL's standalone financial statements reported a total income of Rs 18.43 crore, a profit before tax of Rs 10.47 crore and a net worth of Rs 1.99 crore. These figures represent a modest contribution to Welspun Corp's consolidated financials for FY23- 24, accounting for approximately 0.10 per cent of total income, 0.74 per cent of profit before tax, and 0.03 per cent of net worth. The agreement for this sale was entered into on April 10, 2025, and the buyer, Nauyaan Tradings Private Limited, is a wholly-owned subsidiary of Reliance Strategic Business Ventures Limited, which does not fall under Welspun Corp's promoter/promoter group/group companies.
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About The Company
Welspun Corp Limited is a flagship company of the Welspun Group, one of the world's leading line pipe manufacturers. Known for its advanced manufacturing capabilities and innovative approach, Welspun specializes in producing large-diameter pipes used in various industries, including oil and gas. With a strong focus on sustainability and technology, Welspun Corp is committed to providing solutions that meet the stringent requirements of its global clientele. Its products are integral to major infrastructure projects worldwide, making it a key player in the development and maintenance of critical energy and resource transportation systems.
The company has a market cap of over Rs 20,000 crore and has been maintaining a healthy dividend payout of 36.7 per cent. The company's order book stands at Rs 15,000 crore as of December 31, 2024. The stock is up by 75 per cent from its 52-week low of Rs 441 per share and has given multibagger returns of over 1,000 per cent in 5 years. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.