Welspun Corp plans to raise up to Rs 500 crore via securities

Steel pipes manufacturer Welspun Corp, flagship company of the $3-billion Welspun Group, said on Tuesday it will seek shareholders approval to raise up to Rs 500 crore through securities.

In a BSE filing, it said the company seeks to pass an enabling resolution to borrow funds from time to time by offer of securities including but not limited to Non-convertible debentures (NCD) and/or Commercial Paper for an amount not exceeding Rs 500 crore... The company's annual general meeting is scheduled later this month.

In order to augment resources for the ongoing capital expenditure, long-term as well as short-term working capital and for general corporate purposes, the firm may offer or invite subscription for securities including but not limited to secured/unsecured redeemable NCDs, it added.

Set up in 1995, Welspun Corp has a capacity of nearly 2.2 million tonnes per annum (MTPA). The firm reported a net profit of Rs 16.4 crore in the first quarter ended June 30, as against a net loss of Rs 97.5 crore in the year-ago period.

The company said its return to profitability was on the back of 35 per cent increase in revenue at Rs 1,944.1 crore as it reopened the US mill during the June quarter while in the year-ago period it was on a maintenance shutdown. Shares of the company fell 1.49 per cent on Tuesday to settle at Rs 145.85 apiece on BSE.