Welspun India rose 1.2 percent to Rs 69.3 on BSE after the company said that Welspun Group will invest Rs 4,000 crore in textile projects.
The announcement was made during market hours today, 11 January 2017.
Meanwhile, the BSE Sensex was up 224.7 points, or 0.84 percent, to 27,124.24.
On the BSE, 42,747 shares were traded in the counter so far, compared with average daily volume of 6.37 lakh shares in the past one quarter. The stock had hit a high of Rs 69.75 and a low of Rs 68.65 so far during the day. The stock had hit a record high of Rs 119.90 on 14 June 2016. The stock had hit a 52-week low of Rs 46.35 on 30 August 2016.
The stock had underperformed the market over the past one month till 10 January 2017, gaining 0.15 percent compared with the Sensex's 0.57 percent gains. The scrip had, however, outperformed the market in past one quarter, gaining 21.17 percent as against the Sensex's 4.21 percent fall.
The mid-cap company has equity capital of Rs 100.47 crore. Face value per share is Re 1.
Welspun Group, a $2.3 billion global conglomerate operating in home textiles, line pipes and infrastructure announced an investment of Rs 4000 crore for three large textile projects in Gujarat. The three memorandum of understandings (MoUs) which are being signed during the ongoing Vibrant Gujarat Summit 2017 were announced by Mr. BK Goenka - Chairman, Welspun Group at the Summit.
Amongst the larger of the three projects, Welspun will invest Rs 2000 crore in developing an integrated textile manufacturing zone. This will be a part of the Government of India's Sagarmala project where Kutch is among the first identified key locations.
The company aims to develop a large, modern and futuristic textile industrial complex that will manufacture and supply world class textile products for the global markets. Welspun will leverage on its expertise in developing industrial infrastructures. The Kutch facility will provide a unique ecosystem for entrepreneurs to set up manufacturing facilities.
The project will generate direct employment of nearly 5,000 and will provide indirect employment to nearly 15,000 people.
Welspun will further invest Rs 1000 crore in its technical textile business for capacity enhancement, addition of new products and training and skill development. Under this vertical, the company has already made its mark with products for specialised use in healthcare, fire departments and other utilities.
These products include specialised features such as fire retardants, stain resistant, anti-bacterial, PET resistant, and soil resistance, among others. Most of these products are also recyclable. The project will give direct employment to nearly 1,500 people.
Another Rs 1000 crore is being invested in the advanced textile arm of Welspun that focuses on manufacturing specialised materials for applications in aerospace, defense and automobile sectors. The project will generate a direct employment of 2,000 persons and indirect employment of 5,000.
Welspun Group has already invested Rs 10000 crore in Gujarat so far and fresh investments takes total investment to Rs 14000 crore. These investments will further consolidate Welspun's global leadership position and explore new avenues for its upcoming businesses in technical as well as advanced textiles.
Welspun India reported consolidated net loss of Rs 147.52 crore in Q2 September 2016 compared with net profit of Rs 179.37 crore in Q2 September 2015. Consolidated net sales rose 18.7 percent to Rs 1575.71 crore in Q2 September 2016 over Q2 September 2015.
Welspun India is the leading home fashions supplier in the USA and amongst the top 3 global manufacturers of bed and bath linen.
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