Capital Group, Aberdeen, Others Buy 2.4% Stake in Welspun Corp for Rs 1,433 Cr; Stock Hits 52-Wk High

New Delhi: Financial services company Capital Group, Aberdeen Investments and domestic funds have collectively bought a 2.4 per cent stake in building materials firm Welspun Corp for Rs 1,433 crore through multiple block deals on NSE.

After the stake purchase, Welspun Corp’s shares jumped nearly 6 per cent on Thursday, hitting a 52-week high of Rs 2,437.30 per share on the National Stock Exchange (NSE).

The investors bought a total of 63 lakh shares, amounting to a 2.39 per cent stake in Mumbai-based Welspun Corp. The transaction was executed at an average price of Rs 2,275.30 apiece on Wednesday.

US-based Capital Group was the biggest buyer, with its affiliates acquiring 47,84,526 shares in 14 tranches, amounting to a 1.81 per cent stake in the company.

Other buyers included Scotland-based Aberdeen Investments, mutual funds managed by Edelweiss and Quant, and Edelweiss Life Insurance Company.

The transactions took the combined deal value to Rs 1,433.44 crore.

On the other side, the promoter group entity Welspun Investments and Commercials Ltd sold 60 lakh shares, or a 2.27 per cent stake, in the company, and Welspun Corp CEO and Managing Director Vipul Mathur offloaded 3 lakh shares at the same price.

Following the sale, Welspun Investments and Commercials’ holding fell to 0.29 per cent from 2.56 per cent.

The combined holding of promoters and promoter-group entities also declined to 47.46 per cent from 49.73 per cent.

The transactions followed Welspun Corp’s announcement last week of its largest-ever single order worth Rs 17,200 crore for supplying pipes from its US manufacturing facility.

With the order, the company’s global order book reached a record USD 4.4 billion, or about Rs 42,100 crore — its highest ever — providing revenue visibility and a foundation for growth, the company had said.

In July, Welspun Corp reported a nearly threefold rise in consolidated net profit to Rs 1,047.88 crore for the June quarter, driven by income growth.

It posted a net profit of Rs 349.16 crore in the same period a year ago, according to a regulatory filing.

Its total income rose to Rs 4,144.91 crore from Rs 3,586.52 crore in the first quarter of the previous fiscal year.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)