Welspun Corp Ltd raises Rs 252.80 crore by issuing debentures

NEW DELHI: Leading pipe manufacturer Welspun Corp Ltd (WCL) today said it has raised Rs 252.80 crore by issuing non-convertible debentures.

The money was raised by the flagship firm of Welspun Group through placement of secured Redeemable Non-Convertible Debentures (NCDs) to investors including banks and financial institutions, it said in a filing to the BSE.

"WCL raised Rs 252.8 cr NCDs with maturity of 5 and 7 years," it said, adding this includes Rs 52.80 crore through the green shoe option.

The company further said that "the NCDs with 7 years maturity were raised at a coupon of 11.15 per cent per annum with put/call (option) at the end of 5 years and at 11.25 per cent per annum without any put/call option."

Debentures are a type of debt instrument which are not secured by physical asset or collateral and are backed by the general creditworthiness or reputation of the issuer.

Welspun Corp produces different types of steel pipes at three domestic and two overseas locations-- US and Saudi Arabia -- and has a 2.2 million tonnes per annum production (MTPA) capacity. It also has a plate mill of 1.5 MTPA capacity.

In 2011-12, the company had reported a consolidated net profit of Rs 238.54 crore and net sales of Rs 8,976.58 crore.

Shares of the company closed today at Rs 101.50 apiece on the BSE, up 0.40 per cent from the previous close.