1 week ago
Welspun Corp Shares Slip After Rs 1,433 Crore Block Deals
Some investors sold a large number of Welspun Corp shares in special bulk transactions called block deals.
The shares sold represented 2.4% of the company.
Vipul Mathur, the company’s CEO, was reported as one of the likely sellers.
The selling price was below the previous day’s market price.
After the deal, Welspun Corp’s share price fell slightly.
The company recently received a very large $1.8 billion order in the United States.
That order increased its reported order book from Rs 25,750 crore to Rs 42,100 crore.
Some brokerages expect the company’s shares to rise, while Systematix kept a more cautious Hold rating.
About 63 lakh Welspun Corp shares, equal to 2.4% of outstanding shares, were sold through block deals.
Welspun Corp CEO Vipul Mathur was identified as among the likely sellers, while Welspun Investments held a 2.56% stake as of June 30.
The deal’s floor price was Rs 2,250 per share, a 4.1% discount to the previous NSE close of Rs 2,345.50.
Welspun Corp shares fell 1.21% to Rs 2,319.30 on the BSE after the transaction.
Brokerage target prices range from Rs 2,363 at Systematix to Rs 3,107 at Equirus Securities, following the company’s $1.8 billion US order.
- Who
- Welspun Corp shareholders, including CEO Vipul Mathur among the likely sellers; IIFL Capital Services acted as the sole placement agent.
- What
- A block deal involving 63 lakh Welspun Corp shares, worth about Rs 1,433 crore, led to a decline in the company’s share price.
- Where
- The shares traded on the BSE and NSE; the company’s recently highlighted order is from the United States.
- When
- The shares fell following the reported block deal; the article also cites holdings as of June 30 and an Equirus note dated August 23.
- Why
- The shares were sold at a floor price below the previous closing price, while investors also assessed the company’s large US order and brokerage outlooks.
Bullish Brokerage View
Cautious Brokerage View
Share-price outlook
Bullish Brokerage View
Investec retained a Buy rating with a Rs 2,878 target, while Equirus Securities set a Rs 3,107 target. Nuvama set a Rs 2,437 target.
Cautious Brokerage View
Systematix retained a Hold rating and revised its target to Rs 2,363 from Rs 1,794.
Impact of the US order
Bullish Brokerage View
The large order provides substantial multi-year revenue visibility, strengthens the order book and could support earnings through FY29.
Cautious Brokerage View
Systematix said the order is positive but maintained a Hold rating after factoring in the company’s largest-ever single order; Equirus also noted that specific EBITDA-per-tonne guidance was not provided.
Key facts
- Shares sold
- 63 lakh shares
- Deal value
- Approximately Rs 1,433 crore
- Floor price
- Rs 2,250 per share
- Discount
- 4.1% below the previous NSE close of Rs 2,345.50
- Share-price reaction
- Welspun Corp fell 1.21% to Rs 2,319.30 on the BSE
- Recent order
- A $1.8 billion order in the United States
- Order book
- Increased from Rs 25,750 crore to Rs 42,100 crore, according to Systematix
Quotes
Equirus Securities
Brokerage that assessed Welspun Corp’s large US order and earnings outlook.
“Though no specific absolute Ebitda target was given, the management indicated that the company is directionally moving towards Rs 5,000 crore of Ebitda over the next 3-4 years, supported by the strong US demand environment, expected demand from M.E. and timely capacity expansion”
businesstoday.in
“We expect Welspun Corp to deliver revenue/Ebitda/PAT CAGR of 26 per cent/28 per cent/29 per cent over FY26-FY29E and value WLCO on a SoTP basis on 1HFY29E EV/Ebitda and revise our target price to Rs 2,363/share (Rs 1,794/share earlier)”
businesstoday.in
Sources
Related news
Welspun Corp, Groww Set for Rs 3,322 Crore Block Deals
Welspun Corp Promoters Launch ₹1,417 Crore Block Deal
Welspun Corp Shares Rally on US Growth and Record Orders
Welspun Corp Shares Rally 28% as Brokerages Raise Targets
Capital Group, Aberdeen Buy Welspun Corp Stake, Shares Hit High
Indian Stocks Diverge on Orders, Defence Deals and Sugar Imports
Affordable lenders expand into LAP and MSME for higher returns
Systematix Warns Rupee Faces 6.5% Annual Depreciation Path
VA Tech Wabag Stock: Orders Support Bullish Brokerage Outlook
