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Genesis Asset buys over 5% in Welspun Gujarat

Genesis Asset buys over 5% in Welspun Gujarat
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First Published: Wed, Jul 30 2008. 02 55 PM IST
Updated: Wed, Jul 30 2008. 02 55 PM IST
Reuters
Mumbai: Private equity fund Genesis Asset Managers has acquired over 5% stake in steel pipemaker Welspun Gujarat Stahl Rohren for $75 million-$80 million, a senior official at Welspun told Reuters.
At this deal size, the company would be valued at $1.5 billion-$1.6 billion, not far off its current market capitalisation of around $1.4 billion.
“Around 11% of our equity are now with two bluechip investors. These are long money funds and they believe in us. They’re very recognised and respectable at their place,” Director Akhil Jindal said.
“Genesis informed Welspun about the stake purchase late on Friday,” Jindal said.
In October 2007, UK-based private equity firm 3i <III.L> had bought 6.6 percent of Welspun from the secondary market, he said.
The company posted a largely steady net profit for April-June at Rs711.4 million on a 34% rise in total income to Rs10.97 billion and expects 40-50% revenue growth in July-Sept on heavy orders. Its order book currently stands at Rs72 billion.
Shares in the company were up 1.8% at Rs332.75 in a firm Mumbai market.
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First Published: Wed, Jul 30 2008. 02 55 PM IST