Contract Win Propels Welspun Corp Shares: Saudi Arm Secures Rs 525 Crore Steel Pipe Deals

Welspun Corp Limited (WCL) witnessed a significant boost in its share price on Wednesday, August 7, following the announcement that its Saudi Arabian associate company had secured multiple contracts valued at approximately Rs 525 crore. These contracts are for the manufacturing and supply of steel pipes and coating services, with a project duration of 24 months.

East Pipes Integrated Company for Industry (EPIC): A Leading Manufacturer

The contracts were awarded to East Pipes Integrated Company for Industry (EPIC), a prominent manufacturer of helical submerged arc welded (HSAW) pipes in Saudi Arabia. The financial impact of these contracts will begin to reflect in WCL’s books from the fourth quarter of the current fiscal year and continue until the third quarter of the 2026-27 financial year.

Recent Orders and Contract Wins

This recent win adds to a series of successful contracts for Welspun Corp. Last month, the company secured an order from the Middle East to supply longitudinal submerged arc welded (LSAW) pipes and bends, both bare and coated, scheduled for execution in FY25 and FY26. Additionally, in June, Welspun Corp associate company in Saudi Arabia signed multiple contracts with Aramco worth approximately Rs 3,670 crore.

Positive Market Reaction

Following the announcement of the new contracts, Welspun Corp shares traded 2.3% higher at Rs 649.5 per share as of 10:45 am on Wednesday, August 7. This marks a significant upward trend for the stock, which has risen by 18.5% in 2024 and has not closed in the red since 2021. In 2023, the stock delivered multibagger returns, with prices soaring by 131.34%.

About Welspun Corp

Incorporated in 1995, Welspun Corp Limited is the flagship company of the Welspun Group, promoted by Mr. B K Goenka. WCL specializes in the manufacture of line pipes, with facilities located in India (Anjar in Gujarat, Bhopal in Madhya Pradesh, and Mandya in Karnataka), the United States (Little Rock, Arkansas), and Saudi Arabia (Dammam). Their product range includes longitudinal, spiral, and high-frequency induction-welded pipes, complemented by coating facilities in these regions.

Global Operations and Subsidiaries

Welspun Corp operates in the United States through its 100% subsidiary, Welspun Pipes Inc. (WPI), and in Saudi Arabia through its step-down subsidiary, EPIC (formerly Welspun Middle East Pipe Company LLC, which merged with Welspun Middle East Pipe Coating Company LLC in fiscal 2021). The company also has a 100% subsidiary, Welspun Tradings Ltd., which functions as a bidding entity in the global market.

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