Welspun Living has approved a capital expenditure of ₹121 crore for the de-bottlenecking and modernization of its manufacturing plant in Anjar, Gujarat. The Board of Directors also sanctioned the sale of its 51% stake in subsidiary Welspun Captive Power Generation Limited (WCPGL) to promoter group entity Welspun Corp Limited (WCL) for ₹67.66 crore. These strategic moves aim to upgrade production technology to meet market demands and increase the utilization of renewable energy within the group.

The board meeting was held on July 24, 2026, and the decisions were made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction involving WCPGL is classified as a related-party transaction and will be executed on an arm’s-length basis. The agreement for the sale is expected to be executed by August 31, 2026, which is also the targeted completion date for the disposal.

The approved capex at the Anjar facility focuses on replacing old technology with advanced systems. This investment is designed to enhance plant utilization and better align production capabilities with current market requirements. The modernization project represents a significant commitment to operational efficiency at the company’s key manufacturing hub.

Regarding the divestment, Welspun Living currently holds a 77% equity stake in WCPGL. The transaction involves the transfer of 1,50,64,213 equity shares, each with a face value of ₹10. Upon completion, WCPGL will cease to be a subsidiary and will become an associate company of Welspun Living. This restructuring supports the company’s broader initiative to integrate renewable energy sources, following the operationalization of the transmission line connecting the group captive power plant, as previously disclosed on March 19, 2026.

Financial Impact of WCPGL Divestment

The filing provides details on the financial contribution of WCPGL to the parent company during the last financial year, highlighting the scale of the unit being transferred.

Strategic Implications

The divestment of WCPGL to Welspun Corp Limited centralizes captive power generation under the promoter group, potentially streamlining energy procurement for Welspun Living. With the transmission line already operational, the company can continue to receive renewable energy from the facility post-transfer. The ₹121 crore capex at Anjar signals a focus on capacity optimization rather than expansion, aiming to improve margins through technological upgrades and better asset utilization.

Welspun Living has extinguished 1,44,00,000 fully paid-up equity shares pursuant to its buyback offer, reducing the company's issued, subscribed, and fully paid-up share capital to 94,47,52,514 equity shares. The extinguishment was completed on June 17, 2026, for shares bought back at a price of ₹175 per share. The Buyback Committee approved the extinguishment in a meeting held on June 12, 2026, ensuring compliance with the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018 and the Companies Act, 2013.

The buyback offer, executed through the Tender Offer route, was open for tendering from May 29, 2026, to June 4, 2026. MUFG Intime India Private Limited acted as the Registrar to the Buyback, while JMJA & Associates LLP served as the Secretarial Auditor. National Securities Depository Limited confirmed the extinguishment of 1,44,00,000 equity shares in dematerialized form on June 17, 2026. No shares were extinguished in physical form.

Capital Structure Changes

The reconciliation of the share capital confirms the reduction in equity shares. The issued capital before extinguishment stood at 95,91,52,514 shares, which has now been adjusted to 94,47,52,514 shares.

Shareholding Pattern

The post-buyback shareholding pattern indicates a shift in ownership. Promoters and Persons Acting in Concert (PAC) hold 66.36% of the equity share capital, while Foreign Investors hold 34.64%. The pre-buyback figures showed Promoters and PAC holding 66.24% and Foreign Investors holding 5.52%.