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In a PIPE deal, UK private equity fund 3i Group has acquired a 6.6 per cent stake in Welspun Gujarat Stahl Rohren Ltd for $80 million. The publicly-listed Welspun Gujarat is a leading manufacturer of SAW pipes used by the oil and gas companies. It's part of the $1-billion textiles group Welspun, led by B K Goenka.
3i funds will be used for adding new capacity, for backward integration into manufacture of plates and coils and establishing an overseas presence with a facility in the US. It services leading oil and gas clients like Exxon Mobil, Chevron and Saudi Aramco.
Post completion of the expansion plans, Welspun will have a total capacity of 1.75 million tonne per annum, up from 1 MTPA currently, 3i said in a statement.