Welspun Corp acquires ABG Shipyard's specified assets for Rs659 crore; stock hits the roof

22 Sep 2022 , 01:29 PM

Welspun Corp Limited informed that the Liquidator of ABG Shipyard Limited has declared Welspun as a successful bidder in terms of the Process Memorandum for the private sale of specified assets of ABG Shipyard Limited.

Following this development, the counter hit a new 52-week high of Rs298.50 per piece.

Welspun Corp and its wholly owned subsidiary paid Rs659 crore (including relevant taxes) towards the whole acquisition amount on September 21, 2022.

Welspun Corp’s share in purchase consideration is Rs589 crore, while Nauyaan Shipyard’s share is Rs70 crore.

Welspun Corp Limited is reported to have bought about 150,000 MT of half-constructed old ships and scrap. It is predicted that its potential worth will be realised within 12-15 months following the acquisition’s completion.

Following receipt of the full purchase price, the Liquidator issued the sale certificate in accordance with the IBC for the transfer of the specified assets to Welspun Corp Limited and its wholly-owned subsidiary.

Following that, the Liquidator informed the Company that it had received a provisional attachment order dated September 21, 2022, from the Directorate of Enforcement, Ahmedabad in respect of ABG Shipyard Limited’s properties, including the specified assets forming part of the Award Letter, said Welspun on Thursday.

This shipyard in Dahej (Gujarat) was established in 2008 and spans 165 acres of leased property with 1,000 metres of sea frontage.

At around 1.33 PM, Welspun Corp was trading at Rs285 up by 0.64% from its previous closing of Rs283.20 on the BSE. 

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