Welspun Corp rose 1.56% to Rs 39 at 12:11 IST on BSE after the company said that its shareholders and creditors have unanimously approved a demerger scheme.
The announcement was made after market hours on Tuesday, 22 October 2013.
Meanwhile, the S&P BSE Sensex was down 194.99 points or 0.93% at 20,669.98.
On BSE, 90,000 shares were traded in the counter as against average daily volume of 71,454 shares in the past one quarter.
The stock hit a high of Rs 39.60 and a low of Rs 38.40 so far during the day. The stock had hit a 52-week high of Rs 112.90 on 10 December 2012. The stock had hit a 52-week low of Rs 26.65 on 21 August 2013.
The stock had outperformed the market over the past one month till 22 October 2013, surging 18.15% compared with the Sensex's 2.97% rise. The scrip had, however, underperformed the market in past one quarter, declining 15.51% as against Sensex's 3.5% rise.
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The small-cap company has equity capital of Rs 131.47 crore. Face value per share is Rs 5.
Welspun Corp (WCL) said that its shareholders and creditors have unanimously approved the scheme of arrangement under which the "Other Businesses" undertaking is being demerged into Welspun Enterprises. The meeting was conducted as per the directions of the High Court of Gujarat. The scheme is subject to the sanction by High Court of Gujarat.
Post demerger, Welspun Enterprises shall comprise of steel, infrastructure, oil & gas exploration and energy businesses while Welspun Corp will now solely focus on pipe and plates business in India and globally. Through this demerger, Welspun Group aims to create two focused, independently run companies with enhanced value creation across each business. The demerger will also better enable the management team to protect, grow and nurture each line of business in a more distinct manner, bring more clarity on each business to pursue its strategic objectives and enhance shareholder value, the company said in a statement.
Welspun Corp reported consolidated net loss of Rs 59.43 crore in Q1 June 2013, as against net profit of Rs 7.47 crore in Q1 June 2012. Net sales rose 4.9% to Rs 2675.69 crore in Q1 June 2013 over Q1 June 2012.
Welspun Corp is a one-stop service provider offering complete pipe solution with a capability to manufacture line pipes ranging from half inch to 121 inches, along with specialized coating, double jointing and bending.
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