Welspun Enterprises surges 14% as co hives of 37% stake in JV

NEW DELHI: Shares of Welspun Enterprises surged over 14 per cent on Wednesday after the company sold 37 per cent of its stake in joint venture firm Dewas Bhopal Corridor for Rs 662 crore to the IDFC-sponsored India Infrastructure Fund.

Reacting to the development, the scrip gained 14.78 per cent to hit an intraday high of Rs 59.40.

"Welspun Enterprises entered into a definitive agreement with India Infrastructure Fund, the IDFC-sponsored fund. As per the agreement, the company has sold 37 per cent equity stake in Dewas Bhopal Corridor (DBCL), a 50 per cent joint venture of the company for an enterprise value of Rs 662 crore," Welspun Enterprises said in a BSE filing.

"The company still owns 13 per cent stake in DBCL, which can be transferred in two years subject to approval of Madhya Pradesh Road Development Corporation," the filing said.