Shares of KEC International were up 7 per cent to Rs 467.95 on the BSE in the intra-day trade on Tuesday, surging 12 per cent in past two trading days, after the company entered into a definitive agreement to acquire 100 per cent equity in Spur Infrastructure for an enterprise value of Rs 62 crore. The acquisition is expected to be completed within 60 days from the date of agreement.
The stock of the infrastructure Engineering, Procurement and Construction (EPC) major, an RPG Group Company, had hit a 52-week high of Rs 486.45 on March 3, 2021. Trading volumes on the counter jumped 5-fold with a combined around 1.6 million equity shares having changed hands on the NSE and BSE till 10:20 am.
Spur Infra is an 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 crore, a profitable track record, technical expertise, and experienced manpower. Spur Infra has an order book of around Rs 600 crore comprising of cross-country pipelines and city gas distribution network projects from marquee customers.
"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 prequalifications will enable KEC to capture the lucrative growth opportunities in the oil & gas cross-country pipelines EPC sector in India as well as in international markets," the company said.
“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 management said.