SEPC Limited plans to acquire up to 90% of UAE-based Avenir International Engineers for ₹1,530 crore through a share swap. This move aims to boost its presence in the Middle East oil and gas sector. The company also proposed increasing its authorized capital and borrowing limits.
SEPC to Acquire Avenir International Engineers for ₹1,530 Crore
SEPC Limited is set to acquire up to 90% of UAE-based Avenir International Engineers and Consultants LLC for ₹1,530 crore through a preferential allotment of equity shares. The company's total income is projected to grow significantly to ₹1,085.8 crore in FY26 from ₹646.0 crore in FY25.
Reader Takeaway: Strategic Middle East entry via acquisition; significant equity dilution for existing shareholders.
What just happened
SEPC Limited announced plans to acquire up to a 90% stake in Avenir International Engineers and Consultants LLC, a UAE-based firm. The deal is valued at ₹1,530 crore and will be executed through a share swap, involving the issuance of 153 crore equity shares at ₹10 each to Avenir's shareholders. The company also proposed increasing its authorized share capital to ₹6,000 crore and its borrowing limit to ₹7,500 crore.
Why this matters
This strategic acquisition is aimed at integrating Avenir's engineering and design capabilities, particularly its qualifications with ADNOC (Abu Dhabi National Oil Company). This is expected to significantly strengthen SEPC's position in the Middle East oil and gas and civil infrastructure markets. The proposed capital and borrowing enhancements provide financial flexibility for future growth.
The backstory
Avenir International Engineers and Consultants LLC was established in 2011 and is based in the UAE. SEPC Limited is an Indian infrastructure and construction company. The current financial snapshot indicates a strong projected growth in total income for FY26, with a projected EBITDA of ₹108.9 crore and Net Profit of ₹53.5 crore.
What changes now
The acquisition, expected to conclude by December 2026, will allow SEPC to leverage Avenir's expertise and market access in the Middle East. The increase in authorized capital and borrowing limits will equip SEPC to undertake larger projects and manage increased financial commitments.
Risks to watch
The primary concern for existing shareholders is potential equity dilution due to the issuance of 153 crore new shares. Additionally, the deal and the financial framework changes are subject to shareholder and regulatory approvals, which are crucial for the transaction to proceed.
Peer comparison
While specific peer details are not provided in the filing, SEPC's move targets expansion into a region with significant infrastructure and oil & gas development. Competitors in this space would typically include other Indian and international engineering, procurement, and construction (EPC) companies operating in the Middle East.
Context metrics (time-bound)
Projected Total Income: ₹1,085.8 crore in FY26 vs ₹646.0 crore in FY25.
Acquisition Deal Value: ₹1,530 crore.
Shares to be Issued: 153 crore equity shares.
Proposed Authorized Capital: ₹6,000 crore.
Proposed Borrowing Limit: ₹7,500 crore.
Expected Deal Closure: By December 2026.
What to track next
Investors should monitor the progress of shareholder and regulatory approvals, the upcoming postal ballot, and the successful integration of Avenir's operations post-acquisition. Tracking SEPC's financial performance against its FY26 projections will also be key.