The share price of Welspun Corp rallied 6 percent to hit a fresh 52-week high of Rs 165.00 after the company announced receipt of multiple orders of approximately 164 KMT valuing close to Rs 1,725 crore.
In an exchange filing, Welspun Corp said these orders include reinstatement of an offshore sour pipes supply contract (270 km / 87 KMT) in Australia for the Barossa Offshore Development Project.
“We had received this order last year, as communicated on March 11, 2020, however, the same was subsequently deferred by the customer due to delay in Final Investment Decision (FID) as communicated through our announcement dated March 27, 2020. Subsequent to the recent FID of the project, the customer has given a go ahead to Welspun for the execution of the Contract,” the company said.
Most of the orders (including Barossa Project) will be executed from the company’s facilities in India.
With these orders, the company’s order book stands at 525 KMT valued at approximately Rs 4,800 crore, after considering execution up to May 2021, it said.
Additionally, the company also received a further consideration of Rs 498.50 crore from JSW Steel w.r.t the Business Transfer Agreement (BTA) for the sale of Plates and Coil Mill Division, taking the total amount received to Rs 723.50 crore.
“The balance consideration, subject to closing adjustments for net working capital will be received on fulfillment of regulatory approvals and payment milestones as provided under the BTA,” Welspun Corp said.
Earlier this year, the company had sold its PCMD Division for Rs 848.50 crore to JSW Steel and had received Rs 225 crore on June 1.
At 11:48 am, the stock was trading 3.42 percent higher at Rs 160.40 apiece on the BSE.