Welspun Corp shares in news today as board clears $100-mn investment in US 

Shares of Welspun Corp Ltd are in news on Tuesday after the company said its board has cleared an investment of nearly $100 million by its arm Welspun Pipes Inc. The investment is for the strategic upgrade of the HFIW (High Frequency Induction Welding) Pipes manufacturing and coating capability in the US for enriching its product portfolio. 

Welspun Corp stock ended 1.74% lower at Rs 695.50 on BSE on Monday. The stock has gained 105% in a year and risen 188% in two years. Earlier, Welspun Corp stock opened higher at 709.35 against the previous close of Rs 524.35. Market cap of Welspun Corp stood at Rs 18,246 crore on BSE.   

The stock touched a 52-week high of Rs 748.85 on August 27, 2024 and a 52-week low of Rs 327.05 on September 1, 2023. 

The investment will be funded via local debt and internal accruals and will be spread over 18 months. 

The investment will help in expanding its leadership position in the oil & gas segment in the US market by enriching product portfolio with inclusion of pipe sizes up to 24” outside diameter and 0.750” wall thickness with grades up to x80 for a capacity of 350 KMTPA. 

Th company said it sees very strong demand and future growth potential for this size range, which will also help in further strengthening its position in the oil, liquids, gas and distribution market. It will also allow the firm to make a strong footprint in expanding hydrogen and carbon capture applications market in North America.

Welspun Corp Limited is engaged in the business of manufacturing steel products and plastic products. The company is engaged in the business of production and coating of high-grade submerged arc welded pipes, hot rolled steel plates and coils. It is a service provider of welded line pipes, ductile iron pipes, stainless steel pipes, tubes and bars.