KEC International Ltd, an infrastructure Engineering, Procurement and Construction (EPC) major, has announced plans to raise up to Rs 6,000 crore. The funds will be raised through a combination of Qualified Institutional Placement (QIP) and the issuance of Non-Convertible Debentures (NCDs).
The company, known for its significant projects in the power transmission, railway, and civil infrastructure sectors, is aiming to bolster its financial position and fund future growth initiatives. In a recent board meeting, the decision to approve the fund-raising proposal was taken, reflecting the company’s strategic focus on enhancing its capital structure.
The QIP, a tool allowing listed companies to raise capital without undergoing the lengthy process of a public issue, is expected to attract a wide range of institutional investors. Through the issuance of NCDs, KEC International aims to leverage the current low-interest-rate environment to secure long-term funding at competitive rates.
KEC International’s management highlighted the importance of this move in supporting their ongoing and future projects. “This fund-raising initiative is a crucial step in ensuring that we have the necessary capital to execute our projects efficiently and to explore new growth opportunities,” said Vimal Kejriwal, Managing Director and CEO of KEC International. He emphasized the company’s commitment to maintaining a robust balance sheet while pursuing expansion.
The funds will be deployed across various segments, including power transmission and distribution, railways, civil engineering, and smart infrastructure. This strategic infusion of capital is expected to enhance KEC International’s ability to bid for and execute large-scale projects, thereby strengthening its market position.
The market responded positively to the announcement, with KEC International’s stock witnessing an uptick. Analysts believe that the fund-raising will provide the company with the financial flexibility needed to navigate the competitive EPC landscape and capitalize on emerging opportunities in the infrastructure sector.
As KEC International moves forward with its ambitious plans, the successful execution of this fund-raising initiative will be pivotal in driving its long-term growth and maintaining its leadership in the global EPC market.
