Welspun Corp receives CMA approval for listing of Saudi Arabia-based subsidiary via IPO on local stock exchange

Under the IPO, the company will offer 6,300,000 shares representing 30% of its share capital in the subsidiary.

Oct 01, 2021 12:10 IST India Infoline News Service

Welspun Corp
Welspun Corp announced that the Capital Market Authority (“CMA”) which is the regulatory authority responsible for capital markets in the Kingdom of Saudi Arabia, has approved the Initial Public Offering (IPO) of its Saudi Joint Venture, East Pipes Integrated Company for Industry (“EPIC”).

Under the IPO, the company will offer 6,300,000 shares representing 30% of its share capital in the subsidiary.

"The divestment of shares will be done by the JV partners in proportion to their shareholding in EPIC," Welspun said.

Welspun Corp currently holds 50.01% in the JV through its overseas subsidiary.

"Post the proposed listing, its shareholding will not fall below 35% in the JV and it would continue to be the largest shareholder," Welspun said.

The CMA's approval on the application shall be valid for 6 months from the CMA Board resolution date. The approval shall be deemed cancelled if the offering and listing of the Company's shares are not completed within this period.

At around 12.34 pm, Welspun Corp was trading at Rs143.25 per piece down 0.8% on Sensex. 

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