BK Goenka-led promoter group of Welspun has acquired the entire equity stake held by foreign partner Mulheim Pipe Coatings in Welspun Enterprises, the demerged steel, oil & gas exploration, energy and infrastructure businesses of Welspun.
Mulheim sold its entire 3.14 per cent stake to Welspun Infra Development Ltd, a part of the promoter group of Welspun, at a price of Rs 121 per share for an estimated Rs 5 crore through a private transaction, the firm disclosed on Thursday.
This follows a similar transaction where Mulheim sold its 3.12 per cent stake in the group flagship Welspun Corp for Rs 70.46 crore (nearly $12 million) two months ago. Two promoter entities Welspun Infra Developers and Welspun Fintrade bought that stake.
Early this year Welspun Corp demerged its steel, oil & gas exploration, energy and infrastructure businesses into a separate firm Welspun Enterprises, which made Welspun Corp a focused pipe manufacturer.
Private equity firm Apollo Global holds 13.3 per cent stake in the group flagship. Apollo Global had invested $350 million in 2011 in two group companies – picking minority stake in the group’s flagship Welspun Corp Ltd (for $290 million) and Welspun Maxsteel Ltd (for $60 million).
It had also proposed to invest separately in the group’s infrastructure business, but that did not happen. Apollo later also sold its stake in Welspun Maxsteel to the local promoters.
The Welspun group has diversified businesses and it has multiple firms many being listed companies such as a part of the infrastructure business housed under Welspun Infratech (it owns majority stake in the public-listed Welspun Projects Ltd).
The group also has a separate listed textile firm called Welspun India, a filament yarn producer Welspun Syntex and Welspun Investments & Commercials, which is into a combination of trading activities and an investment holding business.