Welspun Corp Limited has informed the Exchange regarding Outcome of Board Meeting held on April 10, 2025.
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Awaiting price reaction for this filing.
Welspun Corp's board approved selling a further 10% equity stake in Nauyaan Shipyard Private Limited (NSPL) to Nauyaan Tradings Private Limited, a wholly-owned subsidiary of Reliance Strategic Business Ventures Limited, for Rs. 51.72 crores. This is a follow-up to the company's earlier disclosures in March 2025 about inducting a strategic investor. After the sale, Welspun Corp will hold a 16% balance stake in NSPL, down from 26%. NSPL will also repay Rs. 2.91 crore of dues owed to the company. NSPL is a small shipyard subsidiary contributing only 0.10% (Rs. 18.43 crore) to the company's total income and 0.74% to profit before tax in FY24, making it a non-core asset. The transaction is expected to complete on April 11, 2025, and is not a related party transaction.
The sale is value-accretive in the near term with a clear cash inflow of ~Rs. 51.72 crores plus Rs. 2.91 crore in dues recovery. The 16% retained stake allows Welspun Corp to benefit from any future upside in NSPL, but the deal is too small to materially impact the stock. The association with a Reliance group entity may carry positive sentiment for the strategic partnership angle.