Mumbai, August 21: Shares of Welspun Corp Limited surged up to 14% on Friday after the company announced its largest-ever single contract: a $1.8 billion (approximately ₹17,200 crore) order to supply line pipes from its manufacturing operations in the United States.
With this landmark deal, Welspun Corp’s global order book reaches a record high of $4.4 billion (around ₹42,100 crores), the company said in a press release.
This massive contract involves manufacturing and supplying pipes from Welspun’s major facility in Little Rock, Arkansas. The order is up for execution up to Fiscal Year 2029.
While Welspun didn’t divulge the client’s name, it is confirmed that the buyer is a major player in the global energy sector.
While the company did not publicly disclose the specific client’s name, it confirmed the buyer is a major player in the global energy sector.
The order is expected to give Welspun clear visibility over the next three to four years, with EBITDA expected to increase by about ₹5,000 crore by 2029-30. Vipul Mathur, Welspun’s CEO and MD, said that the company won’t need any money to execute the order, as its existing capex plan of $200-250 million is expected to cover most of the work.
“We have some scope for capacity augmentation within our existing facilities, which we are going to undertake. We also have some debottlenecking to do. These are the two or three things we have clearly chalked out and planned,” he further explained in an interaction with CNBC.
Welspun and its subsidiaries are known to meet their deadlines, with the company showcasing India’s ability to take on high-volume contracts in Saudi Arabia, the Middle East and elsewhere for manufacturing highly complex pipes to transport commodities like oil, water and gas.
Welspun’s shares have risen more than 155% in the past one year, reaching ₹2,291 on August 21.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in stocks includes financial risks, and past performance is not indicative of future results. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
