Nauyaan Shipyard's New Captain: Welspun's ₹517.2 Million Exit

Welspun Corp Limited announced today the sale of another 10% equity interest in Nauyaan Shipyard Private Limited (NSPL) to Nauyaan Tradings Private Limited (NTPL) for a consideration of ₹517.2 million. This is a sequel to the company's earlier divestment of 74% in NSPL to NTPL, which is a subsidiary of Reliance Strategic Business Ventures Limited (RSBVL).

The sale is yet another strategic decision by Welspun Corp to rationalize its portfolio and concentrate on debt repayment. NSPL valued at ₹643.78 crore has now become an associate company of Welspun Corp instead of a subsidiary. The proceeds from the sale will further enhance the balance sheet of Welspun, complementing its debt prepayment efforts and saving finance costs.

Reliance Industries Limited (RIL) has, via NTPL, taken majority holdings in NSPL as a part of its larger green hydrogen plans. Shipyard land of 138 acres of leasehold land on the Dahej coast of Gujarat will be used for salt handling, brine preparation, and manufacturing the hydrogen electrolyser. RIL's this strategic takeover is in tune with its vision of increasing its footprint in the renewable energy space.

Both the companies have assured that the transactions are regulatory-approved and are not related-party transactions. Welspun Corp shares have risen sharply after these statements, indicating investors' faith in its financial restructuring and prospects.

Source: Reuters