Key Transaction Details
- Proposed acquisition of up to 90% equity stake in Avenir International Engineers and Consultants LLC, Abu Dhabi
- Acquisition method: Share swap transaction through preferential allotment of 153 crore equity shares of SEPC
- Issue price: ₹10 per share
- Total transaction value: ₹1,530 crore
- Expected completion date: December 2026
- Transaction will be completed without any cash outflow
Target Company Information
- Avenir International Engineers and Consultants LLC is an engineering and design company established in 2011
- Serves oil & gas and civil infrastructure sectors in the UAE
- Possesses established qualifications with ADNOC
- Reported turnover of approximately AED 75.01 million during 2025
Capital Structure Changes
- Authorized Share Capital increase approved from ₹2,250 crore (divided into 225 crore equity shares of ₹10 each) to ₹6,000 crore (divided into 600 crore equity shares of ₹10 each)
- Borrowing limits increased to ₹7,500 crore
Financial Performance Context
In FY26, the company delivered:
- Total Income: ₹1,085.8 crore
- EBITDA: ₹108.9 crore
- Net Profit: ₹53.5 crore
This compares to Total Income of ₹646.0 crore in FY25, with net profit more than doubling over the previous year.
Approval Process
All proposals are subject to requisite shareholders' and regulatory approvals. The company will conduct a Postal Ballot through remote e-voting and has appointed Alagar & Associates LLP, Company Secretaries, as the Scrutinizer to oversee the voting process.
Strategic Rationale
According to Managing Director Mr. Venkataramani Jaiganesh, the acquisition is intended to complement SEPC's engineering capabilities and provide access to the UAE's oil & gas ecosystem. The capital and borrowing framework enhancements are designed to support the company's evolving business requirements and pursuit of larger, more complex opportunities.