Shares of Welspun Corp moved up by 18 per cent to hit 52-week high of Rs 247 on the BSE in Friday’s trade. The spike comes after the company won order worth approximately Rs 5,000 crore for supply of pipes in the United States (US). This deal makes the largest order win in the company’s history.
The stock of iron and steel products maker surpassed its previous high of Rs 222 that it had touched on April 22, 2022. The trading volumes on the counter jumped over 10-fold as around 21 million equity shares changed hands on the NSE and BSE.
“This order is for supply of approximately 325,000 metric ton (MT) of large diameter coated pipes for transporting natural gas from the Permian Basin to Houston. The pipes for this order will be produced from the company’s Little Rock plant in the US and the same will be executed over a period of 12 months, commencing H2 of FY23,” the company said.
Given this, the new large order from the US comes on the back of another win the company had announced in April 2022 – a 26,000 MT order from a long-standing customer in North America, in addition to another order from Australia.
With this, Welspun Crop order book as on date (excluding Saudi) stands at 704,000 MT valued at Rs 10,500 crore (approx).
The management is confident of greater opportunities in mid-to-long term across global markets due to high energy prices and increasing demand scenario. “The company would see more opportunities being converted to business, enabling a healthy and profitable order book at Welspun Corp over the next few years,” the management added.
Meanwhile, the board of directors of Welpsun Corp is scheduled to meet on May 27, 2022, to consider and approve financial results of the company for the quarter and year ended March 31, 2022. The board will also consider recommendation of dividend on preference shares. and equity shares for FY22 and renewing proposal to raise funds by private placement of up to Rs 500 crore via NCDs or commercial papers.