SEPC Limited is acquiring a 90% stake in Avenir International Engineers and Consultants LLC for Rs 1,530 crore through a share swap. This strategic move aims to enter the UAE Oil & Gas sector, leveraging Avenir's ADNOC credentials. The company is also proposing significant increases in its authorized capital and borrowing limits.
SEPC Limited Eyes UAE Oil & Gas Sector with Rs 1,530 Crore Acquisition
SEPC Limited plans to acquire a 90% stake in Avenir International Engineers and Consultants LLC, Abu Dhabi, for Rs 1,530 crore.
Reader Takeaway: Strategic entry into UAE Oil & Gas; significant equity dilution risk.
What just happened
SEPC Limited has agreed to buy 90% of Avenir International Engineers and Consultants LLC for Rs 1,530 crore. The deal will be paid for by issuing new shares to Avenir's shareholders, meaning no cash will be spent by SEPC. This move is designed to give SEPC a foothold in the UAE's Oil & Gas industry.
Why this matters
This acquisition is a major step for SEPC to expand its business internationally, specifically into the lucrative UAE Oil & Gas market. By acquiring Avenir, SEPC gains access to Avenir's existing relationships with ADNOC and its capabilities in securing engineering projects in the region. This diversification could lead to new revenue streams and reduce reliance on existing markets.
The backstory
SEPC Limited is an infrastructure and engineering company. This acquisition represents a significant strategic shift, aiming to leverage international opportunities in a high-growth sector. The company's board has also proposed substantial increases in its authorized share capital, borrowing limits, and investment limits to fund future growth and acquisitions.
What changes now
The acquisition is targeted for completion by December 2026. SEPC will need shareholder approval through a postal ballot for the capital and borrowing limit increases. The share swap means 153 crore equity shares will be issued at Rs 10 per share to Avenir's shareholders, including Avenir Oil Field Equipment L.L.C, Tranvel Holidays Private Limited, and Zoomstud Impex Private Limited. Avenir International has reported consistent turnover in the past three years, with AED 75.01 million in 2025.
Risks to watch
Investors should watch for integration risks, as successfully merging operations and executing projects in a new geographic and sector environment will be critical. Additionally, the issuance of 153 crore new shares will lead to significant equity dilution for existing shareholders, impacting the overall ownership structure.
Peer comparison
While specific peer data for this strategic move isn't immediately available in the filing, SEPC's expansion into the UAE Oil & Gas sector places it alongside other Indian engineering firms that have sought international project wins and diversification. Companies like L&T, Technip Energies, and Saipem are major players in this domain, but SEPC's focus is on leveraging a specific acquisition for entry.
Context metrics (time-bound)
Avenir International reported a turnover of AED 75.01 million in 2025, AED 73.93 million in 2024, and AED 69.17 million in 2023. The acquisition consideration is Rs 1,530 crore.
What to track next
Investors should closely monitor the shareholder approval process for the capital and borrowing limit enhancements. The successful completion and integration of the Avenir International acquisition, along with SEPC's ability to secure new contracts in the UAE Oil & Gas sector, will be key performance indicators.