In a significant strategic move, SRM Contractors Limited (formerly SRM Contractors Private Limited) has announced the acquisition of a 51% stake in Maccaferri Infrastructure Private Limited (MIPL), an Indian company specializing in construction services and environmental solutions. The acquisition was approved by the board during its meeting held on January 17, 2025. The acquisition, set to unfold in four equal tranches, begins with an investment of ₹19 crores to acquire 12.75% of MIPL’s equity, amounting to 15,178 shares at ₹10 each.

This acquisition is pivotal for SRM Contractors, as it will not only provide them with control over the company but also solidify their position in the Indian construction and geotechnical solutions market. With MIPL's expertise in slope stabilization, rockfall protection, and turnkey environmental solutions, SRM aims to leverage these capabilities to expand into new territories across India.

The acquisition is structured so that SRM Contractors will gain 51% voting rights in MIPL immediately after the signing of the Share Purchase Agreement (SPA) and Shareholders’ Agreement (SHA). Full legal ownership of the shares will only transfer after each tranche's respective payments are made. This phased investment strategy ensures compliance with the necessary financial regulations, including Section 186 of the Companies Act, 2013, which governs such acquisitions.

MIPL, which was incorporated in 2017, has steadily grown in the infrastructure and construction domain, with a turnover of ₹109.22 crores as of March 31, 2024. The company's services focus on turnkey solutions for construction, environmental services, and geotechnical challenges. Over the past few years, the company has seen steady revenue growth, with turnovers of ₹39.37 crores in 2021-22 and ₹46.42 crores in 2022-23.

The first tranche of the acquisition is expected to close by mid-2025, with the final tranche to be completed by June 2026. The deal is structured as a cash consideration and aims to reinforce SRM Contractors' expansion into the highly specialized geotechnical market, particularly in the areas of slope stabilization and rockfall protection, thereby extending its footprint across the nation. Additionally, since this acquisition is categorized as an Overseas Direct Investment (ODI) transaction, RBI approval will be sought for the remittance of funds.

With this move, SRM Contractors is positioning itself for a greater presence in the infrastructure sector, bringing together expertise from both companies to address critical geotechnical and environmental challenges across India. This acquisition is expected to fuel further growth and development, opening new business avenues for the company in the years to come.

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