Hazoor Multi Projects Limited (HMPL), a leading Indian infrastructure company, has announced its submission of a binding offer to acquire part of the Engineering, Procurement, and Construction (EPC) business of Gammon Engineers and Contractors Private Limited (GECPL). This move is subject to all necessary approvals, completion of procedural formalities, and acceptance of the offer by the lenders of GECPL.

Background on GECPL

GECPL, established in 1922 by J.C. Gammon, is one of India’s oldest and most respected engineering and construction companies. Over nearly a century, it has built a proven track record in civil engineering and infrastructure development, successfully executing projects across transportation, power, water, and urban infrastructure sectors. The company is currently engaged in EPC projects spanning roads, railways, metro systems, power plants, irrigation projects, ports, and marine infrastructure.

The lenders of GECPL are exploring restructuring options under the Reserve Bank of India’s Prudential Framework for Resolution of Stressed Assets, dated June 7, 2019. This framework is designed to provide flexibility in resolving stressed assets while protecting the interests of all stakeholders. HMPL’s binding offer comes within this context, indicating its strategic interest in acquiring high-value EPC projects while supporting the continuity of ongoing infrastructure initiatives.

Strategic Fit for HMPL

HMPL views this acquisition as a strategic fit for several reasons:

1. Expansion of EPC Portfolio: By acquiring part of GECPL’s EPC business, HMPL can strengthen its project execution capabilities across multiple sectors, including roads, railways, power, and urban infrastructure.

2. Infrastructure Sector Presence: The move enhances HMPL’s footprint in India’s infrastructure industry, allowing it to compete for larger and more complex EPC projects.

3. Proven Execution Track Record: HMPL’s history of successful project delivery complements GECPL’s legacy, creating opportunities for operational synergy and efficiency improvements.

The proposed acquisition is aligned with HMPL’s long-term growth strategy, which focuses on leveraging opportunities in the EPC sector, expanding into high-value infrastructure projects, and enhancing shareholder value.

Financial and Procedural Considerations

The binding offer submitted by HMPL is contingent on approval from the lenders and regulatory authorities, ensuring compliance with legal and financial regulations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Once approved, the transaction will enable HMPL to integrate GECPL’s ongoing EPC projects, strengthening its order book and revenue base.

Potential Benefits

The acquisition offers several strategic and operational benefits:

• Enhanced Market Position: HMPL will solidify its position in the competitive EPC market, increasing visibility and credibility among clients and stakeholders.

• Access to Ongoing Projects: Integration with GECPL’s existing EPC portfolio provides HMPL with immediate access to high-value contracts across multiple infrastructure segments.

• Operational Synergies: Combining HMPL’s project management expertise with GECPL’s experience will optimize resource utilization, cost efficiency, and project delivery timelines.

• Future Growth Opportunities: The acquisition positions HMPL to participate in larger national infrastructure projects and potentially enter new markets in India.

About Hazoor Multi Projects Limited

HMPL is an established player in India’s EPC and infrastructure space, with experience in civil, mechanical, electrical, and water engineering services. The company has successfully executed multiple projects across India, delivering high-quality results and maintaining client trust. HMPL’s strategic focus includes expanding its EPC portfolio, investing in innovative solutions, and enhancing its presence across key infrastructure sectors.

About Gammon Engineers and Contractors Private Limited

GECPL is recognized as a leading engineering and construction company in India, with nearly a century of expertise. The company has executed landmark infrastructure projects, contributing significantly to India’s development in transportation, power, water, and urban infrastructure. Its EPC business is known for delivering high-quality, time-sensitive projects, making it a valuable acquisition target for companies seeking to expand in the infrastructure and construction sectors.

Market and Industry Context

India’s infrastructure sector is undergoing rapid growth, driven by government initiatives like National Infrastructure Pipeline (NIP), Smart Cities Mission, and metro expansions. EPC companies with strong execution capabilities are increasingly sought after for large-scale projects, and strategic acquisitions provide an avenue for growth and market consolidation. HMPL’s proposed acquisition of GECPL’s EPC business is timely, aligning with the sector’s expansion and enabling HMPL to leverage emerging opportunities.

Conclusion

Hazoor Multi Projects Limited’s submission of a binding offer to acquire part of Gammon Engineers & Contractors’ EPC business marks a significant step in its growth strategy. The acquisition is expected to enhance HMPL’s EPC portfolio, strengthen its market position, and provide access to high-value infrastructure projects. Once completed, this strategic move will position HMPL as a key player in India’s EPC and infrastructure sector, contributing to the nation’s development while delivering long-term value to stakeholders.

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