KEC International Limited, a global infrastructure engineering, procurement, and construction (EPC) major, has announced plans to invest up to ₹125 crore in two of its subsidiaries—KEC Asian Cables Limited (KACL) and KEC Power India Private Limited (KEC Power). The move is aimed at strengthening the company’s position in the cables and power transmission sectors.
Key Details of the Investment:
- KEC Asian Cables Limited:
- Investment Amount: Up to ₹118.75 crore.
- Purpose: Subscribing to a rights issue in one or more tranches.
- Utilization: Proceeds will be used for acquiring the cables business of KEC International through a slump sale.
- Ownership: The company’s shareholding in KACL will remain at 95% post-acquisition.
- KEC Power India Private Limited:
- Investment Amount: Up to ₹6.25 crore.
- Purpose: Subscribing to a rights issue in one or more tranches.
- Utilization: Funds will be further invested in KACL, strengthening its operational capabilities.
These investments are part of KEC International’s broader strategy to enhance its business portfolio, focusing on power cables, solar cables, aluminum conductors, and fiber optic cables. Both subsidiaries will benefit from increased financial support, enabling them to scale operations and improve their market competitiveness.
The announcement underscores KEC International’s commitment to expanding its infrastructure footprint while optimizing operational efficiencies across key business segments. The investments will also contribute to value creation for shareholders by leveraging the growth potential of its subsidiaries.
