Welspun receives order for a carbon capture pipeline project in US; stock up 3%

19 Sep 2022 , 12:42 PM

Following the allotment of a US order, shares of Welspun Corp, a division of Welspun Group, increased by roughly 5% in early trading on Monday.

Welspun Corp. announced in a regulatory filing that it has received a sizable order for a carbon capture pipeline project in the United States.

The filing also stated that the order was for the provision of 100,000 MT (roughly) or 785 miles (1,256 km) of high-frequency induction welding (HFIW) pipes, which would be used to transport captured carbon dioxide.

Welspun Corp. shares increased around 5% to Rs258.70 on Monday after the order was successful, before trading at Rs253.85 at 12.45 pm. The stock’s closing price on Friday was Rs247.50.

The company’s Little Rock plant in the US will manufacture the pipes for this order, which will be completed in FY 23—24. However, the business omitted to indicate the order’s projected value.

The last six months have seen a 72% increase in the share price of Welspun Corp, indicating an uptrend. With a growth of 110% in the past year, the scrip has increased investors’ investment by more than twofold in the specified period.

Welspun Corp, headquartered in Mumbai, is the division of the Welspun Group and the world’s second-largest manufacturer of large-diameter pipes. It runs a 1.65 mtpa plant in Gujarat’s Anjar, which will soon reach 2.1 mtpa.

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