Midcap Stock Gains As Subsidiary Signs MoU For Manufacturing Unit In Telangana

Welspun Corp Ltd. Shares on Tuesday, Sept 26, 2023, gained nearly 3% during the early trading hours after Sintex BAPL, the company's wholly-owned subsidiary signed an MoU (memorandum of understanding) with the state government of Telangana for setting up a manufacturing unit for an investment of up to Rs 350 crore.

The plant will produce water tanks and pipes as part of the government's incentive program. The total investment will spread over the next three financial years.

This project, which combines a variety of PVC pipe and fitting types, is Sintex's attempt to break into the pipes industry. The project's design is still in the early stages of development, and its initial investment in land and infrastructure during the current fiscal year will not exceed Rs 50 crore.

Commenting on the development, Welspun Group Chairman, B. K. Goenka said, "As a group we have been running our operations in the state already and this project will create further employment in the state. Sintex is an iconic brand for its water tanks and foray into PVC pipes segment will strengthen our presence into the building material verticals further."

Welspun Corp's shares closed 2.80% higher at Rs 399.60 apiece on the BSE. It hit an intraday high at Rs 400.95 and an intraday low at Rs 393.40.

The stock gained 1% in 1 week, 25.72% in 1 month, and 102.18% in 6 months, respectively. It gained 50.14% in 1 year, 213.17% in 2 years, and 290.23% in 3 years, respectively.

The stock hit a 52-week high of Rs 406.70 apiece on Sept 21, 2023, and a 52-week low of Rs 177.85 apiece on Feb 27, 2023. Its market cap is Rs 10,456.21 Crore.