Welspun Corp Limited has announced the completion of its acquisition of a 49% stake in Welspun Special Coating Private Limited (WSCPL). This move, in partnership with Perma-Pipe Qatar, establishes a joint venture to operate an Internal Fusion Bonded Epoxy (IFBE) coating facility in India. WSCPL is now an associate company, with Welspun Corp holding 49% and Perma-Pipe Qatar 51% equity. This venture aims to cater to the growing demand for protective coatings in oil & gas pipelines and other industrial applications.
Joint Venture Formation Completed
Welspun Corp Limited (WCL) has successfully completed the acquisition of a 49% equity stake in its step-down subsidiary, Welspun Special Coating Private Limited (WSCPL). This transaction marks the formation of a joint venture with Perma-Pipe Qatar, aimed at establishing an Internal Fusion Bonded Epoxy (IFBE) coating facility in India. This development follows an earlier disclosure made on October 29, 2026.
Transaction Details and New Structure
Under the terms of the Share Purchase Agreement, Perma-Pipe Qatar has acquired a 51% equity stake in WSCPL from Welspun DI Pipes Limited (WDI), a wholly-owned subsidiary of WCL, for an aggregate consideration of Rs. 51,000/-. Concurrently, Welspun Corp Limited has acquired the remaining 49% equity stake in WSCPL from WDI for an aggregate consideration of Rs. 49,000/-. Consequently, WSCPL is no longer a wholly-owned subsidiary of WCL and has transitioned to a direct associate company. The company now holds a 49% equity share capital in WSCPL, with Perma-Pipe Qatar holding the remaining 51%.
Joint Venture Operations and Scope
A Shareholders’ Agreement (Joint Venture Agreement) has been executed between WCL and Perma-Pipe Qatar to govern the operations and management of WSCPL as a joint venture entity. The venture will focus on undertaking Internal FBE coating works and related activities within India. IFBE coating is an advanced epoxy-based powder applied to the interior of steel pipes to provide protection against corrosion and chemical damage. The primary applications for this technology include Onshore and Offshore Oil & Gas Pipelines, Slurry Pipelines, Chemical processing plants, Food processing applications, and Underground or underwater water pipelines.
Source: BSE
