The scheme calls for the demerged undertaking to be demerger and the demerged undertaking's investments in Welspun Specialty Solutions Limited (WSSL) (50.03 %), Anjar TMT Steel Private Limited (ATSPL) (100 %), and Welspun Captive Power Generation Limited (WCPGL) to be sold (2.95 %).

The company informed the exchange that the company's Board of Directors decided to propose the scheme of arrangement between Welspun Steel Limited (WSL) and Welspun Corp to NCLT for the transfer of WSL's steel division to the company, subject to regulatory and other approvals, at its meeting on June 28, 2021.

After thorough due diligence by the Independent Agencies, the Board has decided to propose the Scheme of Arrangement to NCLT, the company added. The Rs 362.73 crore consideration will be paid in 6% Cumulative Redeemable Preference Shares, redeemable after 18 months from the date of issuance, with no equity dilution for WCL shareholders.

WSL is a privately held company, based in Welspun City, Anjar. It produces BIS Certified Steel Billets and Direct Reduced Iron (DRI) in its steel division and is working on a Greenfield project to produce TMT bars. The project is expected to cost Rs 175 cr (plus soft costs) and be completed by September 2022, according to the company.

WSL also owns 50.03 % of Welspun Specialty Solution Ltd (WSSL), a listed company, as part of its steel division.

The indirect acquisition of control of WSSL is exempt from making an open offer under the provisions of the SEBI (SAST) Regulations, 2011, because the stakeholders holding not less than 50% of the equity shares in the WSL (holding company of WSSL) are the same stakeholders holding not less than 50% equity shares in the Welspun Corp, the company stated.