SEPC Limited is set to acquire up to 90% of Abu Dhabi-based Avenir International Engineers and Consultants LLC for ₹1,530 crore through a share swap. The company also boosted its authorized share capital and borrowing limits to support growth.
SEPC Ltd to Acquire Avenir International for ₹1,530 Crore
SEPC Limited will acquire up to 90% of Abu Dhabi-based Avenir International Engineers and Consultants LLC for ₹1,530 crore through a share swap deal.
Reader Takeaway: International expansion via cashless acquisition; approval hurdles and integration risks to monitor.
What just happened
SEPC Limited announced a significant move to acquire up to 90% of Avenir International Engineers and Consultants LLC. The deal is valued at ₹1,530 crore and will be executed through a share swap mechanism, specifically a preferential allotment of 15.3 crore equity shares at ₹10 per share.
The Abu Dhabi-based Avenir International, established in 2011, specializes in engineering and design for the oil & gas and civil infrastructure sectors.
Furthermore, SEPC Limited's Board of Directors approved an increase in its authorized share capital from ₹225 crore to ₹600 crore. The company also raised its new borrowing limit to ₹7,500 crore and its investment limit to ₹3,000 crore.
Why this matters
This acquisition signifies SEPC's strategic intent to expand its international footprint, particularly within the UAE's oil & gas sector. The cashless nature of the transaction aims to preserve the company's liquidity.
The enhanced capital and borrowing limits are expected to provide SEPC with the financial flexibility needed to pursue larger projects and support its expanding business operations.
The backstory
In its financial year 2026 standalone results, SEPC reported a substantial 68.1% increase in total income, reaching ₹1,085.8 crore. The company's net profit also more than doubled year-on-year.
What changes now
The acquisition is slated for completion by December 2026, subject to necessary approvals. The strategic integration of Avenir International is expected to complement SEPC's existing engineering capabilities and provide immediate access to the UAE market.
Risks to watch
The transaction is contingent on securing approvals from shareholders via a postal ballot and regulatory clearances. Any delays in this process could impact the targeted completion timeline.
Successful integration of Avenir International's operations into SEPC's existing structure is crucial for realizing the anticipated synergies and strategic benefits.
Context metrics (time-bound)
- Acquisition Target: Avenir International Engineers and Consultants LLC (Abu Dhabi)
- Stake Acquired: Up to 90%
- Consideration: ₹1,530 crore (via share swap)
- Expected Completion: December 2026
- Authorized Share Capital Raised: ₹225 crore to ₹600 crore
- New Borrowing Limit: ₹7,500 crore
- FY26 Total Income: ₹1,085.8 crore (+68.1% YoY)
- Net Profit (FY26): More than doubled YoY.