Shares of KEC International Ltd. are trading flat after touching a day’s high of Rs 954.45 on 1st August after the company announced its emergence as the frontrunner to acquire the promoter’s stake in ITD Cementation.

Sources mentioned that two other players, one domestic and one foreign, were also in talks for the ITD Cementation stake sale.

ITD Cementation had informed the exchanges in July that the promoters were considering divesting their holdings, and the process began soon after.

The ITD promoter, Italian-Thai Development Public Company, which owns 46.64%, is looking to fully exit. KEC International and ITD Cementation have held very advanced deal talks, with a likely announcement by late September or early October.

The deal could be valued at about Rs 9,000 crore, in which KEC International is likely to pay Rs 4,000 crore to Rs 4,500 crore for the promoters’ stake.

KEC International had recently announced plans to raise Rs 6,000 crore, of which Rs 4,500 crore would come through share sales to institutional investors by way of a QIP and the rest Rs 1,500 crore by way of non-convertible debentures.

As of the end of June, KEC International had an order book of over Rs 30,000 crore, while ITD Cementation had an order book of Rs 20,000 crore.

ITD Cementation recently secured a Rs 1,237 crore order to build a residential colony in Delhi.

Both companies work in urban infrastructure, MRTS, airports, highways, bridges, flyovers, and railways, creating potential synergies.

At 12:36 PM, the shares of KEC International Ltd. were trading 1.77% lower at Rs 908.65 on BSE.

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