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Texmaco Rail & Engineering Ltd has said it plans to acquire a majority stake in a private EPC (Engineering, Procurement, Construction) company. In a statement to the stock exchanges, the company said the management of Texmaco Rail has approved acquisition of 76 per cent stake in Bright Power Projects (India) Pvt Ltd.
Texmaco Rail will sign a non-binding term-sheet with promoters of Bright Power for the “acquisition of majority equity share capital (76 per cent) at an enterprise value of about ₹100 crore, subject to applicable conditions”. The company further said that the acquisition will be funded out of internal accruals.
The definitive documentation is expected to be executed in 45 days.
The final transaction is expected to be complete within 3 months, subject to certain approvals/conditions and due diligence.
Texmaco said Bright Power is an EPC company specialising in overhead electrification solutions for Indian Railways. It also serves diverse sectors such as power, utilities, petrochemicals, pharmaceuticals and real estate.
“Bright Power had a net turnover of ₹67.1 crore in financial year 2012-13, ₹77.9 crore in financial year 2013-14 and ₹78.2 crore (unaudited) in financial year 2014-15,” a note by Texmaco Rail said.
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