ICICI Fund investment spins up Welspun

DALAL STREET SPIKES

Welspun India surged 6.10 per cent in Monday's trading after ICICI Venture Funds Management Company said on Saturday that it will take 14.5 per cent stake in the company.

The stock, as a result, hit a high of Rs 92.80 in mid-trading session before closing at Rs 89.55. The counter witnessed volumes of more than 2.23 lakh shares at the BSE.

According to reports, ICICI Ventures would subscribe to a preferential offer of 79.40 lakh shares at Rs 85.90 per share and will also buy 88.82 lakh warrants of Welspun, which can be converted into equity at the same price anytime within 18 months. Promoters of Welspun India will also subscribe to 28 lakh shares on a preferential basis at Rs 85.90 per share.

Promoters will also receive 30 lakh warrants which can be converted into equity at the same price anytime within eighteen months. Welspun will use the cash flows to fund its expansion.