Welspun Corp shares fall as CEO Vipul Shah among likely sellers in Rs 1,433 cr block deals

Welspun Corp Ltd on Wednesday reacted to Rs 1,433 crore worth block deals on the counter earlier today, with MD & CEO Vipul Shah and promoter group entity Welspun Investments And Commercials among likely selling shareholders.

Data showed 63,00,000 Welspun Corp shares changed hands at Rs 2,275.30 apiece, which was 2.99 per cent lower than Tuesday's closing price of 2,345.50. The deal value stood at Rs 1,433.44 crore. As per term sheet seen by Business Today, Welspun Corp's MD & CEO Vipul Mathur was looking to sell 3 lakh shares, while a promoter group entity Welspun Investments And Commercials Ltd was expected to offload 60 lakh shares.

The total selling of 63 lakh shares accounted for 2.4 per cent of the total outstanding shares of Welspun Corp. As per the term sheet, the floor price of the deal was set at Rs 2,250 apiece, a 4.1 per cent discount to Welspun Corp's previous day's closing price of Rs 2,345.50 on NSE. IIFL Capital Services was the sole placement agent for the deal, as per the term sheet.

Welspun Investments And Commercials held 67,58,000 shares or 2.56 per cent stake in the company as of June 30.

Welspun Corp share price today

Following the development, Welspun Corp shares fell 1.21 per cent to Rs 2,319.30 apiece on BSE. The block deal comes as Welspun Corp shares rallied 43 per cent in the past one month. Recently, the company bagged $1.8 billion order in the US.

Welspun Corp target prices

Nuvama has a target price of Rs 2,437 for Welspun Corp. Other brokerages remained more bullish, with Investec retaining its ‘Buy’ rating and target price of Rs 2,878, while Equirus Securities set a target of Rs 3,107. Systematix, meanwhile, retained its ‘Hold’ rating after factoring in the company’s largest-ever single order, worth $1.8 billion.

Systematix said the order has significantly strengthened Welspun Corp’s order book, taking it from Rs 25,750 crore to Rs 42,100 crore, while improving revenue visibility for FY28 and FY29. The brokerage said the company’s medium-term outlook is supported by its record order book, with 60-65 per cent concentrated in the US, and strong execution visibility through FY29. It added that the US business is likely to remain the key earnings driver, supported by capacity expansion and sustained demand.

Systematix raised its FY27 and FY28 Ebitda estimates by 10-11 per cent and PAT estimates by 8-10 per cent, while introducing FY29 estimates. “We expect Welspun Corp to deliver revenue/Ebitda/PAT CAGR of 26 per cent/28 per cent/29 per cent over FY26-FY29E and value WLCO on a SoTP basis on 1HFY29E EV/Ebitda and revise our target price to Rs 2,363/share (Rs 1,794/share earlier),” it said.

Equirus Securities, in a note dated August 23, said the order provides Welspun Corp with substantial multi-year revenue visibility. It noted that while the company did not provide specific Ebitda per tonne guidance for the order due to its long execution period, management indicated that operating margins in the US generally remain attractive.

“Though no specific absolute Ebitda target was given, the management indicated that the company is directionally moving towards Rs 5,000 crore of Ebitda over the next 3-4 years, supported by the strong US demand environment, expected demand from M.E. and timely capacity expansion,” Equirus said.