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Welspun Corp stock zooms 6% on order wins worth over Rs 800 crore

Welspun Corp stock price update: Welspun shares rose sharply following significant new order announcements in India & the US, with key projects including a critical oil transport venture in West Asia

Welspun corporate office building is pictured in Mumbai

Welspun corporate office building is pictured in Mumbai

SI Reporter New Delhi

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Shares of Welspun Corp spurred 6 per cent to Rs 560 apiece on the BSE in Monday's intraday deals after the company informed about order wins worth over Rs 800 crore in a month.

In an exchange filing on Monday, the company said it has bagged multiple line pipe orders, both in India and the USA, cumulatively valued at Rs 872 crore since the last disclosure made on March 22, 2024. 

"Among these orders, one is for supply of Concrete Coated LSAW Pipes and Bends for a critical oil transportation project in the Middle East. The line pipes shall be used for extreme sour service application," the company said in its statement. The execution of these orders, the company said, will be during FY25.

At 12:35 PM, Welspun Corp stock price was quoting at Rs 4.9 per cent per share as against a 0.55 per cent rise in the benchmark S&P BSE Sensex. The stock hit a 52-week high level of Rs 625 apiece on February 6, 2024, and a 52-week low of Rs 210.6 on May 3, 2023. 

Welspun World is one of the fastest-growing global conglomerates, engaged in the businesses of Line Pipes, Home Textiles, Infrastructure, Warehousing, Oil & Gas, Steel, Advanced Textiles, and Flooring Solutions.

The Group has a diversified presence in over 50 countries, and has manufacturing facilities strategically located in India, the USA and Saudi Arabia.

So far in the current calendar year, the stock price of Welspun Corp has slipped 3.4 per cent as against an over 1.5 per cent rise in the benchmark Sensex index. 

Meanwhile, last month, Welspun Corp's associate firm, East Pipes Integrated Company for Industry, and Saudi Arabia's oil giant Aramco mutually terminated a contract Rs 3.39 billion ($40.6 million).

Welspun's unit had bagged the contract for manufacturing and supply of steel pipes for a duration of eight months in January.

The deal represented 3 per cent of the total value of contracts announced by Aramco for Welspun in the financial year 2023-24, which amounts to about Rs 98 billion.

Welspun did not disclose the reason for the cancellation of the contract, but said it would not affect its operating plans.

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First Published: Apr 22 2024 | 12:51 PM IST

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