Capital Group, Aberdeen, Others Buy 2.4% Stake In Welspun Corp For ₹1,433 Cr; Stock Hits 52-Wk High

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

After the stake purchase, Welspun Corp's shares jumped nearly 6% on Thursday, hitting a 52-week high of ₹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% stake in Mumbai-based Welspun Corp. The transaction was executed at an average price of ₹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% 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 ₹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% 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% from 2.56%.

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

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

With the order, the company's global order book reached a record $4.4 billion, or about ₹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 ₹1,047.88 crore for the June quarter, driven by income growth.

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

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