Welspun Corp's promoter group and chief executive are selling a 2.4% stake worth up to ₹1,418 crore via a block deal, days after the pipe manufacturer announced a record $1.8 billion US order, according to livemint.com. The stock initially jumped nearly 20% over two trading sessions before closing nearly 3% lower on Tuesday.
The sale involves the promoter entity and the CEO offering shares at a 4.1% discount through a block deal, as reported by livemint.com. This move comes shortly after Welspun Corp secured the record order, marking a significant milestone for the company. The timing of the share sale, closely following the announcement, highlights the promoters' decision to capitalize on the market momentum.
Welspun Corp's $1.8 billion order is a record for the pipe manufacturing sector and underscores the company's growing footprint in the US market, according to livemint.com. The promoter stake sale at a discount reflects a strategic liquidity move amid heightened investor interest. This transaction is notable in the context of recent large deals in the Indian industrial manufacturing space, where promoter share sales often follow major contract announcements.
The block deal for the 2.4% stake valued at ₹1,418 crore was executed this week, with the stock experiencing volatility around the announcement and sale, per livemint.com. This transaction represents a significant capital movement by Welspun Corp's promoters following the company's record US order.