Capital Group and Aberdeen Investments Acquire 2.4% Stake in Welspun Corp for ₹1,433 Crore

Global and domestic institutional investors have collectively acquired a 2.39 per cent stake in Mumbai-based building materials firm Welspun Corp for Rs 1,433.44 crore. The transaction was executed through multiple block deals on the National Stock Exchange (NSE) at an average price of Rs 2,275.30 per share.

US-based Capital Group emerged as the largest buyer in the transaction. Its affiliates acquired 47,84,526 shares across 14 tranches, securing a 1.81 per cent stake in the company. Additional buyers included Scotland-based Aberdeen Investments, mutual funds managed by Edelweiss and Quant, and Edelweiss Life Insurance Company. In total, the investors purchased 63 lakh shares.

On the selling side, promoter group entity Welspun Investments and Commercials Ltd offloaded 60 lakh shares, which accounts for a 2.27 per cent stake. Additionally, Welspun Corp CEO and Managing Director Vipul Mathur sold 3 lakh shares at the same execution price.

Following the share sale, Welspun Investments and Commercials' holding in the firm dropped from 2.56 per cent to 0.29 per cent. The combined holding of promoters and promoter-group entities decreased from 49.73 per cent to 47.46 per cent.

The block deals followed notable recent developments for Welspun Corp. Last week, the company announced its largest-ever single order, valued at Rs 17,200 crore, to supply pipes from its US manufacturing facility. This order pushed the company's global order book to a record USD 4.4 billion, or approximately Rs 42,100 crore.

Operationally, the company reported strong financial performance earlier in the year. In July, Welspun Corp posted a nearly threefold increase in consolidated net profit, reaching Rs 1,047.88 crore for the June quarter compared to Rs 349.16 crore in the corresponding period of the previous fiscal year. Total income for the quarter rose to Rs 4,144.91 crore from Rs 3,586.52 crore.

Reflecting the market response to the block deals and the company's recent operational updates, Welspun Corp's shares jumped nearly 6 per cent on Thursday, hitting a 52-week high of Rs 2,437.30 per share on the NSE.

"The entry of prominent institutional investors like Capital Group and Aberdeen Investments into Welspun Corp highlights strong external confidence in the company's underlying fundamentals. When large block deals coincide with a record-high global order book and robust quarterly profit growth, it signals solid revenue visibility for the business. At the same time, the partial dilution of promoter holding is a standard market mechanism to accommodate institutional interest while providing necessary liquidity." — Dr. Shishir Gupta, Founder & CEO, StartupLanes