Welspun Corp hits upper circuit, again!

Welspun Corp, which had breached the 10% upper circuit on Friday with high volumes, displayed the same trends today too. The stock, which opened weaker at Rs.58.55, sliiping down to Rs.55, spurted up to Rs.64.40, hitting the 10% upper circuit. Volumes are up over 2 times.

This sudden spike up in the stock price of Welspun Corp is on account of the news - its subsidiary, Welspun Infra Projects Private Limited (WIPPL), has sold its entire 39.88% stake in Leighton Welspun Contractors, Australia, for a net cash consideration of US$99 mn or around Rs.620 crore.

In 2011, Welspun Corp had acquired this stake for cash consideration of Rs 470 crore and another Rs.115 crore was through cash-less transaction. The net proceeds received by Welspun will be used to deleverage its balance-sheet and this deal is expected to be completed in the first quarter of 2014 once the procedural conditions are met.