Welspun Corp spurts up

Welspun Corp is in the limelight, rising 6.5% to hit its intraday high at Rs.165, which is also its new 52-week high. Volumes were up almost 2 times.

The market is pretty happy with the company saying that it has secured orders worth approximately 164 kilo metric tonnes (KMT), valuing close to Rs.1725 crore.

These include, reinstatement of an offshore sour pipes supply contract (270 km / 87 KMT) in Australia for the Barossa Offshore Development Project. This order was received last year, however, the same was subsequently deferred by the customer due to delay in Final Investment Decision (FID).

Subsequent to the recent FID of the project, the company received the go ahead now for the execution of the contract. Most of these orders (including Barossa Project) received, will be executed from its facilities in India

With these orders, the company’s order book stands at 525 KMT valued at approximately Rs.4,800 crore, after considering execution up to May 2021.

The company also gave an update on the business transfer agreement (BTA) for sale of Plates and Coil Mill Division (PCMD) Division for Rs 848.50 crore plus closing adjustments towards net working capital. Welspun said that it has received Rs 498.50 crore, taking the total receipt to Rs 723.50 crore.

The balance consideration, subject to closing adjustments for net working capital will be received on fulfillment of regulatory approvals and payment milestones as provided under the BTA.