KEC International acquires an EPC company in the Oil and Gas Pipelines sector

KEC International Ltd. ("KEC"), a global infrastructure EPC major, an RPG Group Company, has today entered into a definitive agreement to acquire 100% equity in Spur Infrastructure Private Limited ("Spur Infra") for an enterprise value of Rs. 62 crores subject to customary adjustments at closing. The acquisition is expected to be completed within 60 days from the date of agreement.

Spur Infra, incorporated in 2016, is an Indian EPC company engaged in setting up of cross country oil & gas pipelines and city gas distribution networks. In the last three years, Spur Infra has an annual revenue in excess of Rs. 100 crores, a profitable track record, technical expertise, and experienced manpower. Spur Infra has an order book of ~Rs. 600 crores comprising of cross-country pipelines and city gas distribution network projects from marquee customers.

Acquisition of Spur Infra is in line with KEC's strategy to diversify into adjacent areas of growth. KEC's proven project management capabilities and extensive experience of executing cross-country linear projects and managing Right of Way (RoW), along with Spur Infra's technical knowhow, experienced manpower and relevant pre-qualifications will enable KEC to capture the lucrative growth opportunities in the oil and gas cross-country pipelines EPC sector in India as well as in international markets.

Mr. Vimal Kejriwal, MD & CEO, KEC International Ltd. commented, "We launched the oil and gas pipelines EPC business in line with the Government's thrust in the sector and our strategy to diversify the business portfolio into adjacencies. This acquisition will enable us to accelerate growth in this sector and establish this business as one of our key growth drivers going forward."

Shares of KEC International Ltd. was last trading in BSE at Rs. 418.9 as compared to the previous close of Rs. 427.9. The total number of shares traded during the day was 11576 in over 815 trades.

The stock hit an intraday high of Rs. 434.15 and intraday low of 412. The net turnover during the day was Rs. 4937250.

Source : Equity Bulls

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