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Welspun Enterprises Board Approved Stake Purchase in Michigan Engineers

The company's board has also recommended a dividend of Rs 5 per share for the fiscal year 2023-24.

On July 27, Welspun Enterprises signed a stake purchase agreement with Sansaar Housing Finance, Autumn Investments and Infrastructure, and Michigan for a 50.10% stake purchase in Michigan Engineers for a cash consideration of Rs 137.07 crore.

“Upon completion of the acquisition of 50.10 percent equity shares of Michigan, Michigan will become a subsidiary of Welspun Enterprises Limited,” the company said in an exchange filing.

Michigan Engineers is a Mumbai headquartered technology-based construction, procurement, and engineering company focusing on water infrastructure, underground infrastructure, and sewage infrastructure projects.

The acquisition will enable Welspun Enterprise to undertake projects related to segment tunnelling, sewer network rehabilitation, and micro tunnelling through Michigan.

The accretion aligns with the company’s strategy to grow its water infrastructure business segment and enable it to enter into the tunnelling business.

The transaction is expected to be completed within a month.

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