+
Welspun Corp proposes to acquire steel biz from demerged company
Steel

Welspun Corp proposes to acquire steel biz from demerged company

Welspun Corp will purchase the demerged company Welspun Steel Limited (WSL), which is in the business of producing BIS Certified Steel Billets and Direct Reduced Iron (DRI), specialty steel, and thermomechanical treatment bars.

The scheme calls for the demerged undertaking to be demerger and the demerged undertaking's investments in Welspun Specialty Solutions Limited (WSSL) (50.03 %), Anjar TMT Steel Private Limited (ATSPL) (100 %), and Welspun Captive Power Generation Limited (WCPGL) to be sold (2.95 %).

The company informed the exchange that the company's Board of Directors decided to propose the scheme of arrangement between Welspun Steel Limited (WSL) and Welspun Corp to NCLT for the transfer of WSL's steel division to the company, subject to regulatory and other approvals, at its meeting on June 28, 2021.

After thorough due diligence by the Independent Agencies, the Board has decided to propose the Scheme of Arrangement to NCLT, the company added. The Rs 362.73 crore consideration will be paid in 6% Cumulative Redeemable Preference Shares, redeemable after 18 months from the date of issuance, with no equity dilution for WCL shareholders.

WSL is a privately held company, based in Welspun City, Anjar. It produces BIS Certified Steel Billets and Direct Reduced Iron (DRI) in its steel division and is working on a Greenfield project to produce TMT bars. The project is expected to cost Rs 175 cr (plus soft costs) and be completed by September 2022, according to the company.

WSL also owns 50.03 % of Welspun Specialty Solution Ltd (WSSL), a listed company, as part of its steel division.

The indirect acquisition of control of WSSL is exempt from making an open offer under the provisions of the SEBI (SAST) Regulations, 2011, because the stakeholders holding not less than 50% of the equity shares in the WSL (holding company of WSSL) are the same stakeholders holding not less than 50% equity shares in the Welspun Corp, the company stated.

Image Source


Also read: JSW Steel finalises Welspun Steel division acquisition for Rs 848 cr

Also read: Welspun One launches online land buying and leasing platform

Welspun Corp will purchase the demerged company Welspun Steel Limited (WSL), which is in the business of producing BIS Certified Steel Billets and Direct Reduced Iron (DRI), specialty steel, and thermomechanical treatment bars. The scheme calls for the demerged undertaking to be demerger and the demerged undertaking's investments in Welspun Specialty Solutions Limited (WSSL) (50.03 %), Anjar TMT Steel Private Limited (ATSPL) (100 %), and Welspun Captive Power Generation Limited (WCPGL) to be sold (2.95 %). The company informed the exchange that the company's Board of Directors decided to propose the scheme of arrangement between Welspun Steel Limited (WSL) and Welspun Corp to NCLT for the transfer of WSL's steel division to the company, subject to regulatory and other approvals, at its meeting on June 28, 2021. After thorough due diligence by the Independent Agencies, the Board has decided to propose the Scheme of Arrangement to NCLT, the company added. The Rs 362.73 crore consideration will be paid in 6% Cumulative Redeemable Preference Shares, redeemable after 18 months from the date of issuance, with no equity dilution for WCL shareholders. WSL is a privately held company, based in Welspun City, Anjar. It produces BIS Certified Steel Billets and Direct Reduced Iron (DRI) in its steel division and is working on a Greenfield project to produce TMT bars. The project is expected to cost Rs 175 cr (plus soft costs) and be completed by September 2022, according to the company. WSL also owns 50.03 % of Welspun Specialty Solution Ltd (WSSL), a listed company, as part of its steel division. The indirect acquisition of control of WSSL is exempt from making an open offer under the provisions of the SEBI (SAST) Regulations, 2011, because the stakeholders holding not less than 50% of the equity shares in the WSL (holding company of WSSL) are the same stakeholders holding not less than 50% equity shares in the Welspun Corp, the company stated. Image Source Also read: JSW Steel finalises Welspun Steel division acquisition for Rs 848 cr Also read: Welspun One launches online land buying and leasing platform

Next Story
Infrastructure Energy

WattPower, First Solar Host Solar Connect to Boost Agri-Solar in Telangana

WattPower, a renewable energy solutions provider, in collaboration with First Solar, hosted a high-level industry roundtable titled ‘Solar Connect’ at Vivanta, Hyderabad. The event focused on advancing agri-solar deployment in Telangana under the PM-KUSUM scheme. The session brought together policymakers, clean energy experts, and project stakeholders to address the core challenges in scaling agri-solar infrastructure. The agenda included technical presentations by both companies and a panel discussion moderated by Pavit Gandhi, Director, Sales, WattPower. The panel, titled “Un..

Next Story
Infrastructure Urban

PM Modi to Launch Rs 12 Billion Projects in Bihar, Rs 5 Billion in West Bengal

Prime Minister Narendra Modi will visit Bihar and West Bengal on Friday to launch a series of development projects worth over Rs 17 billion, aimed at strengthening infrastructure, connectivity, and socio-economic growth in the two states.Projects in BiharIn Bihar, the Prime Minister will lay foundation stones, inaugurate, and dedicate projects spanning rail, road, rural development, fisheries, electronics, and information technology sectors.He will inaugurate multiple rail projects, including the automatic signalling system on the Samastipur-Bachhwara rail line for improved train operations. T..

Next Story
Infrastructure Transport

IRCON Secures Rs 1.87 Billion in Major Mumbai Metro and Rail Contracts

State-owned engineering firm IRCON International Limited announced on Friday, 18 July, that it has secured three major infrastructure contracts worth over Rs 1.87 billion. The awards include two contracts for Mumbai Metro projects from the Mumbai Metropolitan Region Development Authority (MMRDA) and one railway project in Madhya Pradesh from Rail Vikas Nigam Limited (RVNL).IRCON received a Letter of Award from RVNL for a railway infrastructure project valued at Rs 756 million (inclusive of GST) in Madhya Pradesh. The contract was awarded to the IRCON–JPWIPL joint venture, where IRCON holds a..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?