This Small Cap Iron & Steel Products Shares Hit 52-Week High; Gains Over 19% Intraday

Shares of Welspun Corp Limited in trade on May 20, 2022 rallied by a sharp over 19% to hit a fresh 52-week high price of Rs. 249 per share. The share last in the previous session closed at Rs. 208.9 apiece on the NSE.

The share gains in the stock have come off after the company informed that it has bagged the single largest order in its history for supply of pipes valued at Rs. 5000 plus crore in the United States.

The stock is an outperformer versus Nifty 500 over the week with gains to the tune of close to 46%

In the filing for the same, the company said, "This order is for supply of 325,000 MT (approx) of large diameter coated pipes for transporting natural gas from the Permian Basin to Houston. The pipes for this order will be produced from our Little Rock plant in the US and the same will be executed over a period of 12 months, commencing H2 of FY 23.

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.
With this, our order book as on date (excluding Saudi) stands at 704,000 MT valued at Rs.10,500 crores (approx).

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."

Also on the sidelines, the company informed of the that the meeting of the Board of Directors of the Company is scheduled on 27/05/2022 ,inter alia, to consider and approve (i) the standalone as well as the consolidated audited financial results of the Company for the quarter and year ended March 31, 2022; (ii) recommendation of dividend on preference shares and equity shares for FYE 31.03.2022; and (iii) renewing the enabling resolution of the shareholders for raising of funds by way of private placement up to Rs. 500 crore by issuing Commercial Papers / NCDs, which the Company has traditionally been using for raising Commercial Papers.

The company is diameter line pipe company, engaged in the business of production and coating of submerged arc welded pipes, hot rolled steel plates and coils, and power generation.

Shares of the company last quoted at a price of Rs. 245.85 per share on the NSE.