Demerger of facility may lift sentiment for Welspun
April 21st, 2009
Steel pipe-maker Welspun Gujarat Stahl Rohren’s decision to de-merge its plate-cum-coil mill into a 100 per cent subsidiary may help improve the market valuation for the parent company.
The market value of the company had collapsed significantly following the fall in the steel and oil prices, as that was believed to be a double whammy for Welspun Gujarat.
The fall in oil price was seen as something that would slow down oil sector capex and lower demand for pipes.