The stock of Welspun Enterprises, the smallcap construction and engineering company, surged as much as 4.4%, ahead of surge in promoters' holding, post buyback. Owing to the announcement that company had purchased 2.7 crore shares through buyback and cancelled the same, the stocks outstanding number fell from 174 to 147 million.
Welspun Enterprises’ promoter holding is said to have increased to 44% post buyback offer that culminated in March 2017. Company conducted a buyback through tender offer at Rs 65/ share, and simultaneously, promoters purchased 1.5 million shares from the open market.
The stock price of Welspun Enterprises rose nearly 32% since March 2017, after witnessing a consolidation since April 2016.
Company’s JV with Adani Enterprises to explore oil and gas fields; and acquisition of blocks in Mumbai and Gujarat boosted the share price. Moreover, winning of a government contract by its subsidiary, Adani Welspun Exploration Ltd., buoyed the sentiments.