Welspun Enterprises Shares Surge on ₹1,000 Crore Fundraising Plan and Strong Q3 Results
Welspun Enterprises Limited's Board has approved raising ₹1,000 crore through a preferential issue of 1,90,47,619 warrants convertible to equity shares. The warrants, priced at ₹525 each, will be issued to both promoter (37.40%) and non-promoter investors (62.60%). The company's shares gained up to 10% following the announcement. Welspun's recent quarterly results show a 30% increase in net profit and a 24% rise in revenue year-on-year.

*this image is generated using AI for illustrative purposes only.
Welspun Enterprises Limited has announced a significant move to bolster its financial position through a substantial fundraising initiative. The company's Board of Directors has given the green light to raise ₹1,000 crore through a preferential issue of warrants convertible to equity shares.
Key Details of the Warrant Issue
Particulars | Details |
---|---|
Total Warrants | 1,90,47,619 |
Issue Price per Warrant | 525.00 |
Face Value of Resulting Equity Share | 10.00 |
Premium per Warrant | 515.00 |
Conversion Ratio | 1 warrant : 1 equity share |
Conversion Period | Within 18 months from allotment |
Allotment Structure
The warrants will be issued to a mix of promoter and non-promoter investors:
Category | Number of Warrants | Percentage |
---|---|---|
Promoter (Balkrishan Goenka, Trustee of Welspun Group Master Trust) | 71,23,809 | 37.40% |
Non-Promoter Public Investors (12 entities) | 1,19,23,810 | 62.60% |
Notable Non-Promoter Allottees
- Authum Investment & Infrastructure Limited: 57,14,286 warrants
- Aryavardhan Trading LLP: 19,04,762 warrants
- Garnet Shelters Private Limited: 9,52,381 warrants
Market Response and Financial Performance
Following the announcement, Welspun Enterprises shares gained up to 10%, with the stock currently trading 6% higher at ₹559.45. However, it's worth noting that the stock has declined 7% year-to-date.
The company's latest quarterly results have also contributed to the positive market sentiment:
- Consolidated net profit grew by 30% year-on-year to ₹100.30 crore
- Revenue increased by 24% to ₹1,021.50 crore, compared to ₹823.00 crore in the corresponding quarter last year
- EBITDA surged 35% to ₹152.62 crore
- Operating margins improved to 14.94% from 13.74% a year ago
- Finance costs rose to ₹43.60 crore versus ₹28.40 crore in the year-ago quarter
Implications for Investors
This fundraising initiative represents a significant opportunity for both the company and investors. For Welspun Enterprises, it provides a substantial capital infusion to support its growth strategies. For investors, particularly the non-promoter public entities, it offers a chance to increase their stake in the company at a predetermined price, potentially benefiting from future appreciation in share value.
The success of this warrant issue, coupled with the strong quarterly performance, could be a strong indicator of investor confidence in Welspun Enterprises' future prospects and management's vision for the company's growth trajectory.
As the market continues to react to this news, all eyes will be on the execution of this ambitious fundraising plan and its impact on the company's future performance.
Historical Stock Returns for Welspun Enterprises
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+6.67% | +6.98% | +14.74% | +11.32% | +0.62% | +703.50% |