Welspun Ent on a roll!
By
Research Desk
about 8 years ago
Welspun Enterprises is on a roll. The stock rallied up almost 15% to Rs.59 levels, with volumes scaling some 1.2 lakh shares. From a year ago price of Rs.28, the stock has more than doubled up.
The reason for this optimism on the counter is after the company announced today morning that it had sold 37% equity stake in Dewas Bhopal Corridor to India Infrastructure Fund-II, an alternate fund sponsored by IDFC. This is expected to fetch the company around Rs.120 crore. This is a 50% JV, withan enterprise value of Rs.662 crore. This includes a contingent deferred consideration of Rs.34 crore and debt of Rs.317 crore.
The company has said that this stake sale has increased its cash balance and reduced debt by nearly Rs.282 crore.