KEC Intl gains on slump sale of cable biz for Rs 125 crore

KEC International rallied 2.19% to Rs 1,181.45 after the company executed the business transfer agreement with its subsidiary, KEC Asian Cables (KACL), to transfer its Cables business, on a going concern basis, via slump sale.

The company stated that the subsidiarisation of the Cables business will help improve focus on its core activities, go-to-market approach and capital allocation.

In consideration for the slump sale, KACL shall pay to the company the sum of Rs 125 crore. The transaction is a related party transaction with a subsidiary company of the company and is being done at arms length, it added.

KEC International is part of the RPG group. The company is a global EPC major in power T&D systems. It has also diversified in railway infrastructure, manufacturing cables (for power, telecom, solar and railways), civil construction with a focus on construction of industrial plants, warehouses, residential and commercial complexes, smart infrastructure, and renewable sector (solar) projects.

 

KEC International has reported 53% jump in consolidated net profit to Rs 85 crore on a 14% increase in revenues to Rs 5,113 crore in Q2 FY25 as compared with Q2 FY24.

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