Shares of Welspun Enterprises rose over a percent on July 28 as the company’s board approved the acquisition of a controlling stake in Michigan Engineers.
Welspun Enterprises signed a share purchase agreement on July 27, 2023, with Authum Investment & Infrastructure, Sansaar Housing Finance and Michigan, for the purchase of a 50.10 percent stake in Michigan Engineers for a cash consideration of Rs 137.07 crore.
At 9:25 am, shares of the company were trading up 1 percent at Rs 241.55 on the BSE.
Catch up on all LIVE stock market updates here
“Upon completion of the acquisition of 50.10 percent equity shares of Michigan, Michigan will become a subsidiary of Welspun Enterprises Limited,” the company said in an exchange filing.
The Mumbai-headquartered Michigan Engineers is a technology-based engineering, procurement and construction company with a focus on underground infrastructure, water infrastructure and sewage infrastructure projects.
The acquisition is in line with the strategy of Welspun Enterprises to grow the water infrastructure business segment and enable its entry into the tunnelling business, which complements its existing water and road business. The acquisition would enable Welspun Enterprises to undertake projects relating to micro tunnelling, segment tunnelling and sewer network rehabilitation, through Michigan.
The transaction is expected to be completed within 4 weeks.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
