Welspun stock hits upper circuit on stake sale in Leighton Welspun India

Welspun Corp said on Monday its subsidiary Welspun Infra Projects Pvt Ltd has inked a share sale agreement with Leighton Group to sell Welspun's entire 39.88 per cent stake in Leighton Welspun Contractors India Pvt Ltd (LWIN), for net consideration of $99 million. Welspun Corp stock rose 10 per cent in a flat market on Monday.  

LWIN will now be renamed Leighton India, the firm said in a release to the BSE.

The net proceeds received by Welspun will be utilized to deleverage its balance sheet.
 
The transaction between Welspun Corp and Leighton Group is likely to be completed in the first quarter of  2014 once the procedural conditions are met.  

Welspun Corp in 2011 bought 35 per cent in LWIN for cash consideration of Rs 470 crore and acquired additional shares worth Rs 115 crore.

Welspun Corp is currently in four businesses-line pipes, energy, infrastructure and steel and enjoys a global leadership position in the first two businesses.