Synopsis:
Welspun Enterprises Ltd shares gained 9% , due to the announcement it made of raising funds through the issuance of preferential allotment of warrants worth Rs 1,000 Crore.
This infrastructure-based company witnessed a surge in its share price when the board approved the decision to raise funds by way of issuing preference warrants to the extent of Rs 1,000 crore.
With a market cap of Rs 7,790 Crore, the shares of Welspun Enterprises Ltd made an intraday high of Rs 578.3,0, which is 9.6 percent higher than the previous day’s closing. The shares are trading at a 16 percent discount from their 52-week high.
About the raising of funds
Welspun Enterprises Ltd announced the Raising of funds through issuance of 1,90,47,619 warrants carrying options to subscribe equity shares in the ratio of 1 equity share having face value of Rs. 10/- each at an issue price of Rs. 525 (including premium of Rs.515) for 1 warrant, aggregating up to Rs. 1,000 Crore , by way of preferential issue on private placement basis to the proposed Allottees in one or more tranches, subject to the approval of the members of the Company, Convening of the Extra-Ordinary General Meeting of the members to seek approval of the shareholders regarding this matter will be on Friday, November 07, 2025. Out of the 1,90,47,619 warrants , 71,23,809 will be issued to the promoter i.e –
Mr. Balkrishan Goenka (Trustee of Welspun Group Master Trust) and Remaining 62.57% will be allotted to Non-promoter, Public which includes companies like Authum Investment & Infrastructure Limited, Geecee Ventures Ltd ,Winro Commercial (India) Ltd etc.
Additionally, as per recent filings on BSE, it has reported receiving 2 work orders worth Rs. 7,300 Crores and Rs. 3,145 Crores for the Construction of 6-lane Partially Elevated Highway Corridor along with the improvement of the existing road in the State of Maharashtra on DFBOT (Toll) Mode, with a concession period of 29 years and it is to be completed within 4 years,
Followingly, the second work order was for the Development of a new 910 MLD Water Treatment Plant, including Civil, Mechanical, Electrical & Instrumentation works at Panjrapur, Maharashtra, by Brihanmumbai Municipal Corporation, which is to be completed within 48 months and O&M for 15 years.
Recently, it has been focusing on expanding into high-value segments such as tunnelling, wastewater treatment and large-scale water delivery systems, where it sees “strong demand and attractive opportunities”, driven by rapid urbanization.
Financials and others
Welspun Enterprises Ltd delivered sales worth Rs 845 Crore in Q1 FY26, which is 9.13% lower than its previous Q1 FY25 sales of Rs 930 Crore. However, the YoY profit growth reduced by 2 percent from Rs 110 crore to Rs 101 Crore in the same quarters.
Welspun Enterprises Limited (WEL) , formerly known as Welspun Projects Ltd., is a part of the USD 2.7 billion Welspun Group. The Company operates in the infrastructure space with investments in oil & gas.
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.
Written by Leon Mendonca
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