NEW DELHI: Welspun Enterprises LtdBSE -4.37 % (WEL) today said it has completed the sale of its 15.4 per cent stake in Welspun Energy for around Rs 286 crore.
This deal is another step in the company’s business re-organisation efforts in order to create value for its stakeholders by enhancing focus on core businesses, the Welspun Group company said in a filing to BSE.
It will further improve WEL’s balance sheet and cash reserve, thus setting a stronger platform for future growth.
“Pursuant to the shareholders’ approval by way of postal ballot on February 1, 2017, WEL has divested its stake at a consideration of approximately Rs 2.86 billion,” the company said.
Further consideration is contingent upon occurrence of certain future events, it said.
“This implies more than 3x returns on WEL’s investment of Rs 911 million in Welspun Energy,” it said.
Welspun Enterprises Ltd is an operating company in the infrastructure business. It also has investments in oil and gas exploration.
The company in its current form was created through the merger of Welspun Enterprises Ltd, Welspun Infratech Ltd, Welspun Plastics Pvt Ltd and Welspun Infra Projects Pvt Ltd with Welspun Projects LtdBSE 1.88 % through the Scheme of Amalgamation and Arrangement made effective from May 11, 2015.