Welspun Ent hits record high on acquiring 50.10% stake in Michigan EngineersCapital Market • 7 months agoMichigan is an engineering and construction company, involved in the business of underground infrastructure, water infrastructure and sewage infrastructure projects. It reported a turnover of Rs 319.57 crore in FY23.The company acquired 8,69,596 equity shares representing 50.10% of the paid-up equity share capital of Michigan. Pursuant to the acquisition, Michigan becomes a subsidiary of the company.The acquisition aligns with WELs strategy to expand the water infrastructure business and marks the companys entry into a high margin and high growth water and tunnelling solutions segment, further strengthening its overall business portfolio, the company stated.The strategic investment will enable WEL to enter the urban infrastructure space and provide water and tunnelling solutions, which complements its existing water and road businesses. MEPLs experience and capabilities will now allow WEL to undertake projects in the niche and promising areas of micro tunnelling, segment tunnelling, sewer network rehabilitation and other trenchless technologies across India, leading to diversification of its project portfolio and service offerings.Over the last few years, the company has already established itself in the water and wastewater segment in India and has built an order book of over Rs 6,000 crore for the segment.Sandeep Garg, Managing Director, Welspun Enterprises, said, “MEPL is strong, strategic fit for accelerating the growth of our water business and we are certain that the combined strengths of the two companies will drive significant value for both our shareholders and customers. Our proven project management expertise, national presence, strong industry foothold and robust financial health, coupled with MEPLs technical knowhow, operational and execution capabilities and experienced manpower will deliver a sustained competitive advantage in the water and tunnelling solutions segment. Supported by favourable sectoral tailwinds, the transaction will enable us to further scale up operations and create a unique edge in the industry.”Welspun Enterprises (WEL), part of the Welspun World, is an infrastructure development company focusing on road, water and wastewater segmentsThe companys consolidated net profit zoomed 126.2% to Rs 68.91 crore on 40.6% jump in net sales to Rs 383.49 crore in Q1 FY24 over Q1 FY23.The counter hit an all time high of Rs 318.80 in todays intraday session.