Welspun Specialty Solutions rally 17% after company bags ₹117 crore order

Shares of Welspun Specialty Solutions Limited rallied over 17% to trade at an intraday high of ₹44.4 apiece on the BSE on Monday, June 24. The surge in the stock prices was seen after the company was notified as the lowest bidder for a ₹117 crore contract by Bharat Heavy Electricals Limited (BHEL, Trichy).

As part of the work order, Welspun Specialty Solutions Limited will supply seamless stainless steel boiler tubes for National Thermal Power Corporation (NTPC) Talcher’s 2x660 MW supercritical thermal power project, the company in an exchange filing.

Welspun Specialty Solutions added that BHEL and NTPC approved its participation in the tender process after a stringent assessment.

On June 1, the company informed the exchanges about making necessary arrangements to procure renewable energy from Welspun Renewable Energy Private Limited as part of its environmental, social and governance initiatives.

It said that necessary arrangements have been made to procure nearly 15.5 MW of renewable energy from Welspun Renewable Energy Private Limited or its existing or proposed subsidiary, a related company, for its Jhagadia plant in Gujarat.

Renewable energy will be procured at competitive rates for 25 years, resulting in a substantial reduction in the cost of power.

“The benefits of the same shall start accruing from Q4 FY25. It would be a significant step towards reducing the Company’s carbon footprint and strengthening the ESG initiatives,” the company said in a filing.

In April this year, Welspun Specialty Solutions secured ₹21.64 crore contract from a domestic PSU customer for supplying stainless steel seamless tubes.

Welspun Specialty Solutions is a leading manufacturer of alloy and stainless steel products. The company’s plant is located in Bharuch, Gujarat and produces 1,50,000 MT annually. Welspun Specialty Solutions Limited's precision rolling mill downstream has a capacity of 1,25,000 MT annually.

Shares of Welspun Specialty Solutions closed at ₹42.40 per share, up by ₹4.57 or 12.08% on the BSE.