Welspun Enterprises gain more than 3% on acquiring majority stake in Michigan Engineers for Rs 137 crore

Welspun Enterprises Limited (WEL) gained more than 3 percent in Tuesday’s trade after the company acquired a 50.1 per cent stake in Michigan Engineers Private Limited (MEPL). The deal was completed on August 21 and has turned MEPL into a subsidiary of Welspun Enterprises.

The company has been acquired from existing shareholders for an equity investment of Rs 137.07 crore, Welspun Enterprises said in a filing to the stock exchanges.

Authum Investment & Infrastructure Ltd (AII) divested a 36.05 per cent stake in Michigan Engineers to Welspun Enterprises for Rs 98.63 crore. Sansaar Housing Finance Ltd (SHF) also divested its remaining 14.05 per cent stake in MEPL to WEL for Rs 38.44 crore.

Welspun Enterprises infrastructure project portfolio

Welspun Enterprises, the infrastructure development arm of Welspun World, has already established its foothold in the water and wastewater segment in India, amassing an order book exceeding Rs 6,000 crore for the segment. Presently, the company is engaged in executing several prestigious projects, including the Rural Water Supply Project under the Government of India's Jal Jeevan Mission in Uttar Pradesh, covering 2,500 villages.

Welspun Enterprises is also at the helm of the 418 MLD WasteWater Treatment Facility (WwTF) project at Dharavi, Mumbai. MEPL holds a prominent position in the trenchless technology domain in India having executed several landmark projects.

Shares of Welspun Enterprises were trading 1.52 per cent higher at Rs 314.40 apiece on BSE at 2:09PM.

The stock has proven to be a good investment over the short term as it has given a return of over 12 per cent in the past week and over 36 per cent in the past one-month period. Investors who had bought their Welspun Enterprise share a year ago would have seen returns of over 180 per cent.