The Indian steel pipe manufacturer Welspun Corp has signed a record contract to supply pipes worth a total of $1.8 billion to its US facility. As a result of this event, the company's shares rose by 12.1%, reaching an all-time high on Friday.
This order indicates high demand for pipes used in energy and infrastructure projects. Furthermore, geopolitical tensions have stimulated investment in the creation of new pipeline networks.
The company announced late Thursday that this order, which accounts for approximately one-third of Welspun's market capitalization, is scheduled to be fulfilled in the 2028 and 2029 fiscal years. Thanks to this, the company's global order book reached a record high of $4.4 billion.
Welspun's manufacturing plant in Arkansas plays a key role in the company's expansion plans in the North American market. It is capable of meeting the needs of projects in the oil and gas sector, LNG exports, and hydrogen pipelines.
During the first-quarter earnings call, company management described the demand in the US as 'very robust.' The main drivers of growth were cited as LNG export infrastructure and growing electricity needs driven by AI-managed data centers.
As of 10:04 AM IST, Welspun shares rose to a record level of 2246 rupees, showing a growth of 173.4% since the beginning of the year.