Dubai’s Mark AB Capital to acquire 26% stake of Shriram EPC
Mark AB Capital, a Dubai-based multi family office, will acquire a 26% stake in Shriram EPC, an engineering, procurement, and construction (EPC) contractor at Rs 350 crore.
The company's board of directors will meet on May 19 to discuss and consider the issuance and allotment of equity shares by way of a preferential issue to a prospective investor, as well as NCDs to the lenders, according to the notice. Lenders and other agencies must approve the deal before it can go through.
Shriram Group has been struggling to manage the EPC. Its revenues for the fiscal year ended March 2020 were Rs 681 crore, with a net loss of Rs 681 crore and a net loss of Rs 81 crore.
The EPC industry necessitates perseverance and a long-term investment commitment. It is considered to be a good fit because Mark AB has EPC investments all over the world.
T Shivaraman, MD and CEO of Shriram EPC, told the media that the company will take over the management and become the new promoters, and we will provide some hand-holding until they are completely rooted in.
India's EPC industry is experiencing a period of growth. In the second year of the Covid-19 pandemic, strong order books and better operational preparedness will swell top-lines of mid-sized EPC companies by 15% this fiscal, compared to a nearly 10% fall last fiscal, Credit Rating Information Services of India Ltd informed the media.
Shriram EPC is a construction engineering company based in India with SVL Ltd as its parent organisation.
Mark AB Capital is the multi-family office and merchant banking arm of several large Middle Eastern family groups.