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Construction major NBCC has emerged as the highest bidder for taking over public sector firms HSCC and Engineering Projects (EPI), sources said on Tuesday.
"The total investment from NBCC towards these acquisitions could be to the tune of about Rs 400 crore (4 billion)," they said, adding the merger is in line with the government's decision to merge PSUs to create large state-owned firms..
They further said the two acquisitions are estimated to add Rs 145 billion to NBCC's outstanding order book of Rs 800 billion.
HSCC, formerly known as Hospital Services Consultancy, currently has an order book of Rs 100 billion while EPI's order book stands at Rs 450 billion.
This takeover would pave way for NBCC to become a mega construction company in India with different verticals of expertise in diverse construction industry.
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NBCC's portfolio would also increase with merger of profitable PSUs under its umbrella and also shall contribute towards its global expansion plans.
In 2017, NBCC had taken over another public sector company Hindustan Steelworks Construction Limited (HSCL) to strengthen its steel vertical and expertise.
HSCC, under the health and family welfare ministry, provides project management and consultancy services from concept to commissioning for institutional and healthcare infrastructure projects.
Engineering Projects (India) falls under the purview of the heavy industries ministry. It is engaged in the construction of turnkey industrial infrastructure projects in the power, steel and petrochemical sectors, among others, both in India and abroad.
Besides its headquarters here, EPI also owns office space at Bakhtawar Tower in Nariman Point in Mumbai and also a few apartments in the western suburbs in Bandra.
NBCC is also looking at taking over either the whole or a portion of the 12-acre plot of Richardson and Cruddas in Mumbai's Byculla area, sources added.
Earlier, the Department of Investment and Public Asset Management (DIPAM) had floated expression of interest for merger/ takeover of similarly placed public sector enterprises.
