Chennai-based SEPC Ltd will acquire a 90% stake in Abu Dhabi's Avenir International via a ₹1,530 crore share swap. The deal aims to expand SEPC's oil and gas engineering presence in West Asia by late 2026. The board also approved higher borrowing limits to fund future operations.
SEPC Ltd has announced a strategic agreement to acquire up to 90% of Avenir International Engineers and Consultants LLC, an engineering firm based in Abu Dhabi. According to the company's exchange filing, the transaction will be completed through a share swap, meaning no immediate cash will leave the company. SEPC plans to issue 153 crore equity shares at a price of ₹10 per share to the existing shareholders of Avenir to finalize this acquisition by December 2026.
Strategic Expansion into Oil and Gas
This move is designed to shift SEPC’s business capabilities toward the oil and gas sector. Avenir, which has been in operation since 2011, brings established qualifications with ADNOC (Abu Dhabi National Oil Company), a major energy player in the region. By integrating Avenir’s expertise, SEPC aims to establish a stronger foothold in West Asian infrastructure and energy projects. Avenir reported a turnover of approximately AED 75.01 million for the year 2025, which provides a sense of the scale the company is adding to its portfolio.
Financial Planning and Borrowing Limits
Alongside the acquisition news, SEPC’s board of directors has moved to increase the company's financial flexibility. The board proposed raising the authorized share capital from ₹225 crore to ₹600 crore, subject to shareholder approval. Furthermore, the company has increased its limits for loans, guarantees, and investments to ₹3,000 crore, while setting a new borrowing ceiling of ₹7,500 crore. These changes suggest that the management is preparing for a period of capital-intensive operations or expansion, though such high borrowing limits also mean the company will need to manage its debt-to-equity ratio carefully as it scales.
Business Context and Monitorables
SEPC, formerly known as Shriram EPC, has historically focused on water, mining, and industrial infrastructure. Investors will likely look for details on how the company plans to integrate a foreign entity like Avenir into its existing structure, especially given the distance and the complexities involved in cross-border project management. A key monitorable for shareholders will be the execution of these projects under the new expanded capacity and whether the debt taken to fund operations remains sustainable over the long term. The market will also track the final shareholder approval process for the capital increase and the integration of Avenir’s order book into SEPC’s financial performance.