Welspun Enterprises to Acquire 50.10% Stake in Michigan Engineers

Welspun Enterprises has received approval for the acquisition of a 50.10% stake in Michigan Engineers. The Board of Directors of the company at its meeting held July 27, 2023, has approved the same. The company signed a Share Purchase Agreement (SPA) on July 27, 2023, with Authum Investment & Infrastructure, Sansaar Housing Finance and Michigan, for the purchase of a stake in Michigan, for consideration of Rs 137.07 crore, subject to the satisfactory completion of conditions precedent as set out in the SPA. Upon completion of the acquisition of 50.10% equity shares of Michigan, Michigan will become a subsidiary of Welspun Enterprises. 

The acquisition is in line with the strategy of Welspun Enterprises to grow the water infrastructure business segment and enable its entry into the tunnelling business, which is an adjacency to the existing water and road business. The acquisition would enable Welspun Enterprises to undertake projects in relation to areas of micro tunnelling, segment tunnelling and sewer network rehabilitation, throughout Michigan. 

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. In the infrastructure space, WEL is focused on the road and water sectors. While the Company’s main focus is on Hybrid Annuity Model (HAM) projects as a developer, it also takes up value accretive projects in the BOT-Toll and EPC space. 

On Friday, the stock opened at Rs 241.95 and touched a high and low of Rs 241.95 and Rs 232.30, respectively. The BSE group ‘A’ stock of face value of Rs 10 has touched a 52-week high and low of Rs 243.20 and Rs 97.65, respectively. 

Last one week high and low of the scrip stood at Rs 241.95 and Rs 229.20, respectively. The current market cap of the company is Rs 3,245.11 crore. The promoters holding in the company stood at 54.53%, while Institutions and Non-Institutions held 6.27% and 39.20%, respectively. 

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.