Welspun Enterprises surges on acquiring 50.10% stake in Michigan Engineers

Welspun Enterprises (WEL) has completed the acquisition of a 50.10% stake in Michigan Engineers (MEPL), a trenchless technology-based EPC company in the urban water infrastructure segment, from the existing shareholders for an equity investment of Rs 137.07 crore. With the completion of the transaction, MEPL is now a subsidiary of WEL.  

The acquisition aligns with WEL’s strategy to expand the water infrastructure business and marks the company’s entry into the high-margin and high-growth water and tunnelling solutions segment, further strengthening its overall business portfolio.  

Leveraging the sophisticated infrastructure development techniques deployed by MEPL, the strategic investment will enable WEL to enter the urban infrastructure space and provide water and tunnelling solutions, which complement its existing water and road businesses. MEPL’s experience and capabilities will now allow WEL to undertake projects in the niche and promising areas of micro tunnelling, segment tunnelling, sewer network rehabilitation and other trenchless technologies across India, leading to diversification of its project portfolio and service offerings. 

Welspun Enterprises (WEL) (Formerly known as Welspun Projects), part of the Welspun Group, is an operating Company as well as a holding company. The company’s key activity is in the infrastructure business. 

Today, the stock opened at Rs 314.70, with a high and low of Rs 318.80 and Rs 312.05. The stock is currently trading at Rs 315.85, up by 1.99%. The stock has a 52-week high of Rs 318.80 and a 52-week low of Rs 108.25. The company has a ROCE of 10.01% and an ROE of 11.4% with a market capitalisation of Rs 4,743 crore.  

In the last six months, the shares of the company have given about 130% returns, and Investors should keep a close eye on this stock. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.