Welspun Corp Ltd's associate company, East Pipes Integrated Company for Industry (EPIC) in the Kingdom of Saudi Arabia (KSA), has announced that its shareholders have approved the Board of Director's recommendation to grant bonus shares in the ratio of 1:2 through the capitalization of SAR 105 million from retained earnings.
The share capital of EPIC will increase by 50% from SAR 210 million to SAR 315 million. The number of shares before the increase is 21,000,000 and after the increase will become 31,500,000 shares. By increasing its capital, EPIC aims to maximize shareholders wealth that balance between growth investment and dividends distribution, in line with future prospects, underlying growth in free cash flow, and long-term value creation through investments in available opportunities.
Welspun Mauritius Holdings Ltd. ( a subsidiary of Welspun Corp Ltd.) is the largest shareholder in EPIC with an ownership interest of 35.01%. EPIC completed its IPO with the successful listing in KSA on the Saudi Exchanges Main Market (Tadawul) in February 2022. The market capitalization of EPIC as on date is approximately SAR 1.5 billion. The IPO was part of EPIC's overall corporate development strategy to institutionalise the company and anchor its competitive position as a leader in the pipes industry, as part of its next phase of growth. The infrastructure sector and current economic environment in KSA is conducive to growth, and EPIC anticipates an increase in demand resulting from a large pipeline of projects over the next 2 to 3 years, thus, translating into a robust performance for the company in the medium term.
Shares of Welspun Corp Limited was last trading in BSE at Rs. 225.65 as compared to the previous close of Rs. 228.75. The total number of shares traded during the day was 33519 in over 830 trades.
The stock hit an intraday high of Rs. 232.00 and intraday low of 224.95. The net turnover during the day was Rs. 7650686.00.