Welspun Corp Limited
Welspun Corp Limited has completed the acquisition of a 49% equity stake in Welspun Special Coating Private Limited (WSCPL), previously a step-down wholly owned subsidiary of the company. This transaction forms part of the establishment of a joint venture for setting up an Internal Fusion Bonded Epoxy (IFBE) coating facility in India.
Transaction Details
The company executed a Share Purchase Agreement with Welspun DI Pipes Limited (WDI, a wholly-owned subsidiary), Perma-Pipe Qatar, and WSCPL. Under this agreement:
- Perma-Pipe Qatar acquired 51% equity stake in WSCPL from WDI for an aggregate consideration of ₹51,000
- Welspun Corp Limited acquired the remaining 49% equity stake in WSCPL from WDI for an aggregate consideration of ₹49,000
Joint Venture Agreement
Welspun Corp Limited also executed a Shareholders' Agreement (Joint Venture Agreement) with Perma-Pipe Qatar to govern the operations and management of WSCPL as a Joint Venture entity.
Corporate Structure Change
As a result of this transaction, WSCPL has ceased to be a step-down wholly-owned subsidiary of Welspun Corp Limited and has become a direct associate company. The current shareholding structure is:
- Welspun Corp Limited: 49% equity share capital
- Perma-Pipe Qatar: 51% equity share capital
Business Operations
The Joint Venture will undertake Internal FBE (Fusion Bonded Epoxy) coating works and related activities in India. IFBE coating is described as an epoxy-based powder applied electrostatically to the interior of steel pipes to protect against corrosion and chemical damage.
Applications
The major applications of this technology include:
- Onshore and offshore Oil & Gas Pipelines
- Slurry Pipeline
- Chemical processing plants
- Food processing applications
- Underground or underwater water pipelines