Welspun Corp Board Approves $100-Million US Investment Today

03 Sep, 2024

Welspun Corp Board Approves $100-Million US Investment Today

Welspun Corp Ltd is making headlines today as its board approves a nearly $100 million investment through its subsidiary, Welspun Pipes Inc. This substantial investment will strategically upgrade the HFIW (High Frequency Induction Welding) Pipes manufacturing and coating capabilities in the U.S. The goal is to enhance Welspun’s product portfolio and solidify its position in the oil and gas sector.

The stock of Welspun Corp ended 1.74% lower at Rs 695.50 on the BSE on Monday, despite having gained 105% over the past year and 188% over two years. The stock opened higher at Rs 709.35, compared to the previous close of Rs 524.35. The company's market capitalization stood at Rs 18,246 crore. The stock recently hit a 52-week high of Rs 748.85 on August 27, 2024, and a 52-week low of Rs 327.05 on September 1, 2023.

The investment, which will be financed through local debt and internal accruals over 18 months, aims to expand Welspun’s leadership in the U.S. oil and gas market. It will introduce new pipe sizes and grades, enhancing capabilities for oil, liquids, gas, and distribution markets. This move also targets growth in hydrogen and carbon capture applications in North America. Welspun Corp continues to lead in manufacturing high-grade submerged arc welded pipes and other steel and plastic products.