Shares of pipe maker Welspun Corp Ltd (WCL) today soared by 10 per cent after the company decided to exit from its joint venture with Leighton Group.
Welspun Corp's share price surged 9.99 per cent to close the day at Rs 64.4 -- its upper circuit limit on the BSE.
At the NSE, the stock rose by 9.67 per cent to close the day at Rs 64.65.
Welspun Corp has decided to exit from its joint venture with Leighton Group by selling its entire 39.88 per cent stake for a net cash consideration of USD 99 million (Rs 614 crore).
The company has entered into a pact with Leighton Group to sell the stake its subsidiary Welspun Infra Projects Pvt Ltd (WIPPL) had in Leighton Welspun Contractors India Pvt Ltd (LWIN), WCL said in a statement today.
"With this sale, LWIN will be renamed as Leighton India," it said, adding, the decision to exit LWIN was aimed at repositioning itself in the infrastructure space.
WCL had in 2011 acquired 35 per cent stake in LWIN for cash consideration of Rs 470 crore to cash in on opportunities in the Indian infrastructure sector especially Public-Private- Partnership projects. It bought additional stakes in the firm subsequently in a cash-less transaction worth Rs 115 crore.
In the broader market, the BSE benchmark Sensex ended at 21,143.01, down 50.57 points.