Welspun Corp spurts on bagging multiple orders

Welspun Corp spurted 5.16% to Rs. 163.10 after the company secured multiple orders of approximately 164 kilo metric tonnes (KMT) valuing close to Rs. 1,725 crore.
These orders include, reinstatement of an offshore sour pipes supply contract [270 km / 87 kilo metric tonnes (KMT)] in Australia for the Barossa Offshore Development project. Welspun Corp received this order last year, and intimated the bourses on 11 March 2020. However, the same was subsequently deferred by the customer due to delay in Final Investment Decision (FID) as announced on 27 March 2020.
Following the recent FID of the project, the customer has given a go ahead to Welspun Corp. for the execution of the contract. Most of the above-mentioned orders (including Barossa project) received, will be executed from its facilities in India. With these orders, Welspun Corp’s order book stands at 525 KMT valued at approximately Rs. 4,800 crore, after considering execution up to May 2021. The announcement was made after market hours yesterday, 8 June 2021.
Meanwhile in a separate announcement pertaining to update on the business transfer agreement (BTA) for sale of Plates and Coil Mill Division (PCMD) Division for Rs. 848.50 crore plus closing adjustments towards net working capital, Welspun Corp said it has received Rs. 498.50 crore, taking the total receipt to Rs. 723.50 crore.
The balance consideration, subject to closing adjustments for net working capital will be received on fulfillment of regulatory approvals and payment milestones as provided under the BTA, the company said.
Welspun Corp offers pipe solutions with a capability to manufacture line pipes, along with specialized coating, double jointing and bending.