KEC International Shares Soar After ₹125 Crore Cables Business Transfer Deal

31 Dec 2024 , 01:22 AM

KEC International Ltd witnessed a 3.34% jump in shares on 30 December, after having declared a business transfer agreement (BTA) with respect to its cables business. The company has executed the agreement with its subsidiary KEC Asian Cables Ltd (KACL) for slump sale of cables business, which is at a value of ₹125 crore. KEC International Ltd shares has gained a total of 97% in the last one year, and 35% gain in the last one year.

The BTA is carried out in the form of a going concern, which will ensure continuation of the business and thus, operational stability. The move aligns with KEC’s strategy to focus on its core activities and optimize capital allocation for more efficient growth.

Post-transfer, the cables business will be fully owned by KACL, with 95% ownership retained by KEC International. KEC has assured there are no conflicts of interest arising from this transaction. This restructuring allows KEC International to streamline its go-to-market strategy, contributing to better management of resources.

KEC International has secured transmission & distribution order worth ₹1,040 crore besides raising total order intake up to ₹17,300 crore in the current fiscal year. It reflects strengthening of the company’s position in the market and enrichment of its shareholders.