Welspun Enterprises Sells 37% Stake in Road JV for Rs 662 Crore
New Delhi: Welspun Enterprises Ltd on Wednesday said it has divested a 37 per cent stake in its joint venture Dewas Bhopal Corridor Pvt Ltd for Rs 662 crore to India Infrastructure Fund.
"Welspun Enterprises entered into a definitive agreement with India Infrastructure Fund, the IDFC-sponsored fund. As per the agreement, the company has sold 37 per cent equity stake in Dewas Bhopal Corridor Pvt Ltd (DBCL), a 50 per cent joint venture of the company, at an enterprise value of Rs 6.62 billion," Welspun Enterprises said in a filing to the BSE.
The enterprise value of Rs 662 crore includes a contingent deferred consideration of Rs 34 crore and debt of Rs 317 crore.
"The company still owns 13 per cent equity stake in DBCL, which can be transferred in two years subject to approval of Madhya Pradesh Road Development Corporation Ltd,' it further said.
At 12:27 p.m., shares in Welspun Enterprises were trading 8.21 per cent higher at Rs 56 apiece on the BSE, whose benchmark Sensex was up 0.88 per cent.
