Welspun Corp Limited announced an inter-group transaction involving the transfer of the 100% equity stake in Welspun Pipes Company (WPC), KSA. The stake moves from Welspun Mauritius Holdings Limited (WMHL) to Welspun Global Holdings Limited (WGHL), both wholly-owned subsidiaries. The transaction involves a cash consideration of USD 8 million and is aimed at streamlining the company’s overseas holding structure, with no expected material impact on financials.
Intra-Group Equity Transfer Approved
Welspun Corp Limited has informed exchanges regarding a significant inter-group transaction involving the transfer of ownership of its Saudi Arabian subsidiary. The Board has approved the transfer of the 100% equity stake in Welspun Pipes Company (“WPC”), KSA. This transfer is occurring between two wholly-owned subsidiaries of the Company: from Welspun Mauritius Holdings Limited (“WMHL”) to Welspun Global Holdings Limited (“WGHL”).
Transaction Details and Consideration
The transfer is structured as a sale for an aggregate consideration set at USD 8 million. The consideration will be settled through a cash payment. Upon completion, WPC will shift from being a subsidiary of WMHL to becoming a wholly owned subsidiary of WGHL. The transaction is contingent upon receiving all necessary statutory and regulatory approvals.
Target Entity Background (WPC)
Welspun Pipes Company (WPC) is primarily engaged in the manufacturing of pipes, tubes, and hollow shapes from iron and steel in the Kingdom of Saudi Arabia. The company was incorporated relatively recently on 08 February 2024. The objective of the proposed transfer is purely internal, aimed at streamlining the Company’s overseas holding structure.
Expected Impact Assessment
Crucially, because this is an internal transfer between two wholly owned subsidiaries, the transaction does not result in any change in the ultimate ownership of WPC. Consequently, the management expects the deal will not have any material impact on the operations, financial position, or profitability of Welspun Corp Limited.
Compliance and Timeline
The transaction falls under the definition of a related party transaction but is confirmed to be undertaken on an arm’s length basis. Approvals from local authorities in the Kingdom of Saudi Arabia are required. The indicative timeline set for the completion of the acquisition and transfer is on or before 30 June, 2026.
Source: BSE
