M&A

M&A

Welspun acquires 50.10% stake in Michigan Engineers for Rs.137-Cr

BSE Announcement  

Publicly listed Welspun Enterprises Limited (WEL) has acquired a 50.10% stake (8,69,596 equity shares) in fellow Mumbai-headquartered Michigan Engineers Pvt Ltd (MEPL), an EPC (Engineering, Procurement and Construction) company in the urban water infrastructure segment, for INR 137.07 crore. from Authum Investment & Infrastructure Limited and Sansaar Housing Finance Limited. MEPL's FY23 revenue stands at around INR 319 crore, with an EBITDA margin of ~21.5% and a PAT of INR 35.17 Cr. The Net Worth of Michigan (as of March 31, 2023) was INR 200.12 crore. The company has been clocking an average EBITDA margin of 19%+ for the last five years on a sustainable basis. Further, the company's new order book addition grew fivefold in last five years, with an addition of around INR 1,475 crore in FY23, taking the unexecuted order book to around INR 1,932 crore as on March 31, 2023. This provides visibility and certainty over the next about 3 years.

From the Venture Intelligence M&A Deals Database: In May 2023, Authum Investment & Infrastructure had acquired an about 41% stake in Michigan Engineers Private Limited from fellow publicly listed Patel Engineering (which earlier held a 51% stake) for INR 80.37 Cr. In total a 72% stake in Michigan Engineers was transferred from Mr. Saurin Patel and Patel Engineering to Sansaar Housing Finance Limited and Authum Investment & Infrastructure respectively. (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)