Welspun Corp Limited has announced the completion of a strategic investment in its wholly-owned subsidiary, Nauyaan Shipyard Private Limited (NSPL), wherein a strategic investor has acquired a 74% equity stake. The company received a total of ₹476.39 crore from the transaction, which includes ₹382.73 crore towards equity and ₹93.66 crore towards outstanding dues.
With the completion of this deal, NSPL has ceased to be a subsidiary of Welspun Corp and has now become an associate company, effective March 21, 2025.
Following the capital infusion, Welspun Corp stated that it plans to utilize the surplus cash, along with its existing treasury, to aggressively reduce its debt burden. As part of this initiative, the company has already pre-paid ₹725 crore in debt on the same day and aims to pre-pay a total of ₹1,000 crore by March 31, 2025. This move is aligned with Welspun Corp’s strategic focus on lowering finance costs and strengthening its balance sheet.
As of December 31, 2024, the company’s consolidated net debt stood at a minimal ₹104 crore. With the latest transaction and repayments, Welspun Corp has transitioned into a consolidated net cash position, significantly enhancing its financial flexibility.
