KEC International shares jump 5% on Rs 1,073 crore order wins; key details

Shares of KEC International Ltd climbed 5 per cent in Monday's trade after the RPG group company secured new orders of Rs 1,073 crore across its various businesses. With the fresh orders, KEC International's year-to-date order intake now stands at Rs 18,400 crore, up 60 per cent. 

The company said that the uptick in order intake has resulted in its order book + L1 being over Rs 40,000 crore. Following the development, the stock rose 5.02 per cent to hit a high of Rs 1,214.25 on BSE.

In the Transmission & Distribution (T&D) business, KEC secured orders in Middle East and SAARC region. In the Civil segment, it secured orders in the industrial segment in India. In the transportation segment, its joint venture secured an order for design, supply and construction of a passenger ropeway in the North-East. Also, in the Cables segment  KEC bagged orders for supply of various types of cables in India and overseas.

MD & CEO Vimal Kejriwal said he is pleased with the various orders secured across its business verticals. 

"We are particularly enthused by our maiden order in the growing segment of ropeways. With the recent wins in the Middle East and SAARC, we have bolstered our International T&D order book in addition to our already robust India T&D order book, further solidifying our overall T&D business." 

With this formidable order book and a promising pipeline of tenders, KEC MD said his company has a clear visibility of growth in the coming quarters.

In another development, KEC said that it has executed the business transfer agreement on December 30, regarding transfer of Cables business of the company, on a going concern basis via slump sale, to KEC Asian Cables Limited, a subsidiary of the company.

The Finance Committee of KEC International at its meeting held today approved the investment in 
the equity shares of KEC Asian Cables, up to an amount not exceeding Rs 118.75 crore, by way of subscribing to the rights issue in one or more tranches.
I also approved investment in the equity shares of KEC Power India Private Limited, up to an amount not exceeding Rs 6.25 crore, by way of subscribing to the rights issue in one or more  tranches.