This metal stock hits new 52-week high, here's why
Premium- Welspun Corp announced the winning of the single largest order in its history for a supply of pipes valued at more than ₹5,000 crore approximately in the United States.
Mumbai-based Welspun Corp on Friday hits a fresh all-time high on stock exchanges as the company bagged the single largest order in its history. Also, the company announced to consider dividend for FY22 and fundraising up to ₹500 crore in a meeting scheduled for next week.
At around 2.52 pm, Welspun Corp on BSE was trading at ₹247.05 apiece up by ₹38.30 or 18.35%. A few minutes ago, the stock held onto its new 52-week high of ₹250.50 apiece. The new all-time high is also its 20% upper circuit.
That said, Welspun Corp jumped by at least 20% in a single trading session.
In a year, Welspun Corp shares have risen by a whopping over 76.5%. The shares stood near ₹141 apiece level on May 20 last year.
In its regulatory filing, Welspun Corp announced the winning of the single largest order in its history for a supply of pipes valued at more than ₹5,000 crore approximately in the United States.
Vipul Mathur, Managing Director and Chief Executive Officer, Welspun Corp Limited, said, “We are delighted to win the single largest order in the history of our company. Our deep understanding of customer needs, quality orientation, and impeccable execution track record coupled with world class technology and innovation is what differentiates us. Our pan global order book and successive wins in a highly competitive environment validate our global leadership position in this market segment."
The order is to supply approximately 325,000 MT of large diameter coated pipes for transporting natural gas from the Permian Basin to Houston. For this order, Welspun Corp will produce the pipes at its Little Rock plant in the US.
The company expects to execute the order over a period of 12 months. While the commencement of the order will be in the second half of FY23.
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"This large new order from the US comes on the back of another win we had announced in April 2022, of a 26,000 MT order from a long-standing customer in North America, as well as another large order from Australia," Welspun Corp added in its statement.
With this order, Welspun Corp's order book now stands at 704,000 MT amounting to ₹10,500 crore as of date.
Mathur added, "We are confident that given the prevailing high energy prices and increasing demand scenario, further opportunities are likely to arise over the mid-to-long term in both the Global and the US market, and we would see more opportunities being converted to business, enabling a healthy and profitable order book at Welspun Corp over the next few years."
In another regulatory filing today, Welspun Corp announced that the board will consider the recommendation of dividend on preference shares and equity shares for the financial year ending March 31, 2022.
The company's board of directors will be meeting on May 27 to consider the same.
Also, the board will consider renewing the enabling resolution of the shareholders for raising of funds up to ₹500 crore by issuing Commercial Papers / NCDs on private placements, which the Company has traditionally been using for raising Commercial Papers.
Notably, on May 27, the company will also announce its financial performance for the quarter and year ended March 31, 2022.