July 30, 2008 / 6:28 AM / 11 years ago

Genesis Asset buys over 5 pct in Welspun Gujarat

MUMBAI, July 30 (Reuters) - Private equity fund Genesis Asset Managers has acquired over 5 percent stake in steel pipemaker Welspun Gujarat Stahl Rohren (WGSR.BO) 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 percent 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 over the telephone.

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 711.4 million rupees on a 34 percent rise in total income to 10.97 billion rupees and expects 40-50 percent revenue growth in July-Sept on heavy orders.

Its order book currently stands at 72 billion rupees.

Shares in the company were up 1.8 percent at 332.75 rupees in a firm Mumbai market.

$1= 42.45 rupees Reporting by Swati Pandey; Editing by Sunil Nair

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