Knowledge Marine & Engineering Works Limited has informed the Exchange about Acquisition
KMEW · price
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Knowledge Marine & Engineering Works Limited (KMEW) has completed the acquisition of three companies in the marine and dredging space for a total cash consideration of approximately ₹1.98 crore. It bought a 29.99% stake in Indian Ports Dredging Private Limited (IPDPL) for ₹41.53 lakhs, taking its holding to 99.99% and making it a wholly owned subsidiary. Similarly, it acquired 25.99% in Knowledge Infra Ports Private Limited (KIPPL) for ₹34.44 lakhs, also making it a wholly owned subsidiary. A 51% stake was acquired in Kamal Marine & Engineering Works Private Limited (KMEWPL) for ₹121.87 lakhs, making it a subsidiary. IPDPL and KIPPL are related party transactions conducted at arm's length, while KMEWPL is not a related party deal. KIPPL had a turnover of nearly ₹20 crore in FY24, while IPDPL did about ₹1.95 crore and KMEWPL only ₹3.66 lakhs.
This is a consolidation move that brings three marine/dredging companies under KMEW's umbrella, strengthening its core business footprint. While the deal size is relatively small in cash terms, the assets being acquired (especially KIPPL with strong revenues) could add to the company's top line once consolidated. Short-term stock reaction is likely to be muted given the modest deal value.