Welspun Gujarat raises $250 million in 2009 with Successful Placement of US$ 100 million QIP

Mumbai - November 24, 2009: Welspun Gujarat Stahl Rohren Ltd., (Welspun), the flagship company of the Welspun Group and the 2nd largest line pipe manufacturers (Source: Financial Times, UK 2008) launched and successfully completed the capital raising exercise of US$ 250 million. This capital raising exercise has been achieved over the last 2 months by way of $150 million of Foreign Currency Convertible Bonds (FCCB) offering which was placed in October, 2009 and $100 million in form of Qualified Institutional Placements (QIP) of equity shares, placed recently.

This, largest ever capital market initiative by the company was extremely well received amongst renowned domestic and institutional investors.

The funds will be utilized to invest for capital expenditure, retirement of high cost debt, investments in growth opportunities and other usage in accordance with applicable statutory and/or regulatory requirements. The new shares being issued under QIP will be listed on the Bombay Stock Exchange and National Stock Exchange and the FCCBs are listed on the Singapore Exchange. JP Morgan has acted as the sole book-runner for both FCCB and QIP.

Speaking on the occasion, Mr. B.K. Goenka, Chairman and Managing Director of Welspun said, "Successful placement of FCCB and QIP reiterates the trust and belief that the investors repose on us. This fund raising will pave way for the accelerated growth journey of Welspun and the Company becoming one of the most respected pipe companies in the World".

The stock was trading at Rs.282.20, up by Rs.9.60 or 3.52%. The stock hit an intraday high of Rs.282.40 and low of Rs.274.25.

The total traded quantity was 860371 compared to 2 week average of 907085.

Source : Equity Bulls

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