Welspun Enterprises Limited witnessed a notable surge of over 3 percent in morning trade on November 28 as investors applauded the company’s strategic decision to veer away from sustainable energy solutions. The board’s rationale, citing the longer gestation period and capital-intensive nature of such ventures, garnered positive attention from investors.
The decision holds significance, especially considering the company’s earlier move in February to explore businesses and approve the acquisition of Welspun New Energy Limited, a promoter group company, at a fair value of Rs 1 lakh for 100 percent equity share capital.
In an exchange filing on November 27, the company elaborated on the latest decision, stating, “In view of this, the Board of Directors approved the transfer of its entire shareholding in Welspun New Energy Limited to the promoter group entities at a consideration of Rs 1 lakh.” The filing further added, “In addition to the share purchase consideration, the promoter group entities shall repay the entire amount of outstanding debt provided by the company to Welspun New Energy.”
As of 11:59 am, the shares maintained a relatively flat position at ₹159.70, reflecting the market’s mixed response to Welspun Enterprises’ strategic shift in focus.
