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Welspun promoters buy Mulheim Pipe Coatings’ stake in Welspun Enterprises

By Jasleen Kaur Batra

  • 28 Aug 2014
Welspun promoters buy Mulheim Pipe Coatings’ stake in Welspun Enterprises

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.

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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.

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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.

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