Welspun Corp Limited has announced a substantial acquisition of equity shares, increasing its shareholding percentage through open market purchases as disclosed in its regulatory filing.

Share Acquisition Details

Welspun Corp Limited acquired 2.72 crore shares through open market purchases, raising its shareholding from 51.06% to 55.17%. The company acquired 2,72,39,744 equity shares carrying voting rights through open market transactions. This acquisition represents 4.11% of the total share capital and voting rights of the company.

Capital Structure

The company's equity share capital structure remained unchanged following the transaction:

Regulatory Compliance

The disclosure was made pursuant to Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing confirms that Welspun Corp Limited operates as a promoter/promoter group entity in this transaction.

Transaction Methodology

The shares were acquired exclusively through open market purchases, with no involvement of off-market transactions, public issues, rights issues, or preferential allotments. The company reported no encumbrances, pledges, or liens on the acquired shares.

Corporate Information

Welspun Corp Limited, incorporated under the Corporate Identity Number L27100GJ1995PLC025609, maintains its registered office at Welspun City, Village Versamedi, Taluka Anjar, District Kutch, Gujarat. The disclosure was signed by Kamal Rathi, Company Secretary and Compliance Officer, from the company's Mumbai corporate office.

CARE Ratings has assigned a CARE A1+ rating to Welspun Specialty Solutions Limited (WSSL) Rs. 50 crore Commercial Paper program, while also reaffirming existing ratings for the company's bank facilities. This rating action reflects positively on WSSL's financial standing and creditworthiness in the short-term debt market.

Key Highlights

• New Rating: CARE A1+ assigned to Rs. 50 crore Commercial Paper program
• Existing Ratings: Reaffirmed for bank facilities
• Credit Enhancement: Unconditional corporate guarantee from parent company Welspun Corp Limited (WCL)
• Parent Stake: WCL holds 51.06% stake in WSSL

Financial Position

WSSL's financial position has shown significant improvement, as evidenced by its balance sheet data:

The company has demonstrated substantial growth in its asset base and a significant strengthening of its equity position. The reduction in both current and non-current liabilities indicates improved financial health and reduced debt burden.

Implications of the Rating

The CARE A1+ rating, which is the highest rating for short-term instruments, indicates:

1. Strongest degree of safety regarding timely payment of financial obligations
2. Lowest credit risk
3. Enhanced ability to raise short-term funds

This rating may positively impact WSSL's ability to access short-term funding at competitive rates, potentially improving its working capital management and overall financial flexibility.

Parent Company Support

The credit enhancement through WCL's unconditional corporate guarantee plays a crucial role in the rating assignment. This guarantee underscores the parent company's commitment to WSSL and provides an additional layer of financial security to investors.

Conclusion

The CARE A1+ rating for WSSL's Commercial Paper program, coupled with the reaffirmation of existing ratings, reflects the company's strong financial position and the backing of its parent company. This positive rating action may enhance WSSL's standing in the financial markets and potentially lead to more favorable borrowing terms for its short-term funding needs.

Investors and market participants may view this development as a positive indicator of WSSL's financial health and its ability to meet short-term financial obligations. However, as with all investments, it's crucial to consider broader market conditions and company-specific factors when making investment decisions.