We hereby inform the Exchange of the Press Release titled "SEPC Limited announces Strategic Acquisition of 90% Stake in Avenir International Engineers and Consultants LLC, Abu Dhabi". Detailed ....
M&A
▲ Positive Development
MEDIUM RISK
📅 Filed on BSE: 24 Mar 2026, 10:06 AM IST · BSE ID: 5a4143d2-127f-4a46-9952-9796f441251a
View Original BSE Filing (PDF)
💡
In Simple Terms
SEPC is buying a 90% stake in an Abu Dhabi engineering company for about Rs. 1,530 crore to expand globally into Oil & Gas projects.
🤖 AI Summary
- SEPC Board approved 90% stake acquisition in Avenir International, Abu Dhabi, valued ~INR 1,530 crore
- Avenir is established Oil & Gas engineering firm with AED 500 million robust order book
- Avenir FY24 revenue AED 73.93 million (~INR 171.89 crore); founded 2007, ADNOC-approved vendor
- Share swap arrangement; completion within six months subject to lenders' and shareholders' approval
- Strategic shift for SEPC from domestic EPC player to globally diversified engineering solutions provider
🔢 Key Numbers — exact figures from BSE filing, not rounded
Valuation (90% stake)
~INR 1,530 crore
Avenir Order Book
AED 500 million
Avenir FY24 Revenue
AED 73.93 million (~INR 171.89 crore)
Avenir FY23 Revenue
AED 69.17 million (~INR 156.73 crore)
Consideration Structure
Share swap arrangement
Expected Completion Timeline
Within six months
🏢 How This Affects the Company
Acquisition expands SEPC's addressable market from domestic infrastructure to high-growth Oil & Gas sector and MENA region. Avenir's AED 500 million order book and established client relationships with ADNOC and DEWA provide immediate revenue pipeline and operational footprint.
Share-based consideration (~INR 1,530 crore valuation) affects equity structure pending completion. Avenir's FY24 revenue of AED 73.93 million (~INR 171.89 crore) adds to consolidated financials post-completion; no immediate cash outlay disclosed.
Integration combines Avenir's specialized Oil & Gas FEED and PMC capabilities with SEPC's EPC execution strengths. Requires alignment of technical standards, project delivery processes, and workforce across India-UAE operations.
Deal completion subject to lenders' and shareholders' approval — creates execution risk. Cross-border integration in MENA regulatory environment introduces geopolitical and currency exposure. No promoter conflict-of-interest stated, maintaining arm's-length transaction status.
👥 What This Means For Shareholders
✅
Action Required
Shareholders must vote on acquisition approval when convened; monitor regulatory filings for shareholder meeting intimation and completion status updates.
👤
Who Is Affected
All SEPC shareholders affected via equity dilution through share issuance for Avenir acquisition. Deal value ~INR 1,530 crore funded entirely by share swap with no cash consideration.
🔍
Management Signal
Board prioritizes geographic and sectoral diversification toward higher-margin, technology-driven Oil & Gas services over traditional domestic infrastructure — indicates confidence in MENA growth thesis and synergy realization.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
Shareholders' meeting notice and voting outcome on acquisition approval; announcement of shareholder consent date.
Regulatory approvals from lenders disclosed — watch BSE filings for conditional approval or waiver notices.
Reg 31A(10) filing post-completion — signals deal closure and Avenir reclassification as SEPC subsidiary.
MEDIUM RISK
Deal completion contingent on multiple approvals over six-month window. Cross-border MENA integration, regulatory complexities, and unproven synergy execution introduce execution and operational risks.
💡 Investor Takeaway
SEPC acquired 90% of Avenir International for ~INR 1,530 crore via share swap, gaining AED 500 million order book and MENA Oil & Gas entry. Avenir FY24 revenue AED 73.93 million (~INR 171.89 crore). Completion within six months subject to lender and shareholder approvals. Strategic shift from domestic infrastructure to global engineering platform.
⚖️ Strengths & Concerns
✅ Positives
- Avenir holds AED 500 million order book with blue-chip clients ADNOC and DEWA, providing revenue visibility and operational credibility in MENA region.
- Avenir FY23-FY24 revenue grew from AED 69.17 million to AED 73.93 million; established 2007 with ISO certifications and proven execution track record.
⚠️ Concerns
- Deal completion contingent on lenders' and shareholders' approval — non-execution risk remains over six-month timeline.
- SEPC consolidated revenue of INR 796.89 crore (nine months FY26) dwarfs Avenir's FY24 run-rate; integration complexity and margin dilution unquantified.
📅 Company Track Record
SEPC (formerly Shriram EPC Limited) is established domestic EPC player in Water & Wastewater, Roads, Industrial Infrastructure, and Mining. Q3 FY26 (nine months ended Dec 2025): consolidated revenue INR 796.89 crore, EBITDA INR 83.60 crore, net profit INR 39.81 crore — exceeded full-year FY25 revenue of INR 597.7 crore.
Based on publicly available historical data. For context only.