KEC International gained 1.34% to Rs 424.5 after the EPC company announced that it has entered into a definitive agreement to acquire 100% equity in Spur Infrastructure for an enterprise value of Rs 62 crore subject to customary adjustments.
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 had an annual revenue in excess of Rs 100 crore. Spur Infra has an order book of Rs 600 crore comprising of cross-country pipelines and city gas distribution network projects from marquee customers.KEC said the acquisition is to diversify into adjacent areas of growth. It will also enable KEC to capture lucrative growth opportunities in the oil & gas cross-country pipelines sector. The acquisition is expected to be completed within 60 days from the date of agreement.
KEC International is a global infrastructure Engineering, Procurement and Construction (EPC) major. It has presence in the verticals of Power Transmission and Distribution, Railways, Civil, Urban Infrastructure, Solar, Smart Infrastructure, Oil & Gas Pipelines, and Cables. On a consolidated basis, the company posted a 34.8% fall in net profit to Rs 46.14 crore on a 15.1% rise in net sales to Rs 2540 crore in Q1 FY22 over Q1 FY21.
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