Welspun Corp announced value unlocking of approx. Rs. 940 crores through the divestment of its Plate and Coil Mill Division (PCMD) and its 43 MW Power Division.
The sale consideration for PCMD is Rs. 848.5 crores, and closing adjustments pertaining to Net Current Assets as of Closing Date (expected to be approx. Rs. 25 crores), taking the total expected consideration to Rs. 873.5 crores.
The 43 MW Power Division is being sold at Rs. 66.9 crores.
The Company periodically reviews its business strategy and as a part of that, has decided to focus on its core assets and look at strategic options for non-core assets, so as to keep its operations asset-light. PCMD and 43 MW Power Division have been identified as noncore assets and the Company has entered into agreements to divest these. By selling these divisions, the Company is expected to move towards an asset-light model, thus achieving improvement in its profitability ratios and return ratios. Further, the transaction will strengthen the balance sheet by providing significant liquidity to the Company and deleveraging the balance sheet.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)