The acquisition is expected to be completed within 60 days from the date of the agreement.
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.”
The company highlighted that the 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-qualification 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.
Spur Infra, incorporated in 2016, is an Indian EPC company engaged in setting up cross country oil & gas pipelines and city gas distribution networks. In the last three years, Spur Infra has had annual revenue above Rs100cr, a profitable track record, technical expertise, and experienced manpower. Spur Infra has an order book of ~Rs600cr comprising of cross-country pipelines and city gas distribution network projects from marquee customers.
At around 11.32 am, KEC International was trading at Rs440 per piece up 5.04% on Sensex. The stock has touched an intraday high and low of Rs449.80 per piece and Rs417 per piece respectively.