Steel pipe maker Welspun Gujarat announced Welspun Corp Ltd via its divisions, will purchase a majority equity stake in a Saudi Arabian pipe and pipe-coating plant.

According to declaration, the company's directors have given nod in this regard, during a conference held this morning.

But, the investment would be subject to authorizations and compliances in both India and Saudi Arabia, it added without disclosing any further financial aspects of the agreement.

The high-tech mill established in the year 2006 can produce up to 2.7 lakh MTPA of pipes, it said.

The declaration added that Welspun will also hold majority equity stake in recently commissioned pipe coating plant thus permitting to offer complete solution to the Oil and Gas companies as well as water companies in Gulf Corporation Council (GCC) area.

The stock of Welspun Gujarat Stahl Roh hit an intraday peak of Rs 280.90 and an intraday low of Rs 272.80.

At 10:19 hrs, the share stood at Rs 277.30 after making a gain of Rs 6 (2.21%).

The stock was trading with volumes of 240,066 shares. On Monday (May 03), the share ended down 0.35% at Rs 271.30. (With Inputs from Agencies)