Authum Investment Acquires Additional Stake in Welspun Michigan Engineers for ₹23.50 Crore

Mumbai, India – January 29, 2025​

Authum Investment & Infrastructure Limited (NSE: AIIL, BSE: 539177) has announced the execution of a Share Purchase Agreement to acquire an additional 2.01% stake in Welspun Michigan Engineers Limited (WMEL), further strengthening its investment in the urban infrastructure sector.

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Key Highlights of the Acquisition​

• Acquired Entity: Welspun Michigan Engineers Limited (WMEL)
• Stake Acquired: 2.01% (34,802 equity shares)
• Total Stake After Acquisition: 12.96% (previously 10.95%)
• Acquisition Cost: ₹23.50 crore (₹23,50,03,376.29/-)
• Acquisition Method: Cash Consideration
• Transaction Completion Date: Expected by January 31, 2025

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Strategic Impact of the Acquisition​

✔ Strengthens Holding in Infrastructure Sector

• WMEL specializes in urban infrastructure, underground utilities, and water/sewage projects.
• This acquisition aligns with Authum’s investment strategy in high-growth infrastructure sectors.

✔ Enhances Long-Term Growth Prospects

• WMEL's expertise in trenchless technology offers a strong competitive advantage.
• Ongoing urbanization and government projects boost growth potential.

✔ Solid Financial Performance of WMEL

• Net Worth (March 31, 2024): ₹218.11 crore.
• Revenue Growth:
  • FY 21-22: ₹293.28 crore
  • FY 22-23: ₹319.57 crore
  • FY 23-24: ₹415.53 crore
• Profit After Tax:
  • FY 21-22: ₹22.21 crore
  • FY 22-23: ₹35.17 crore
  • FY 23-24: ₹18.01 crore.

✔ No Regulatory Approvals Required

• Transaction is expected to be completed smoothly without any governmental approvals.

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WMEL’s Market Position & Business Focus​

✔ Industry: Engineering, Procurement & Construction (EPC)
✔ Core Business Areas:

• Underground Infrastructure Projects
• Water & Sewage Infrastructure Development
• Trenchless Technology Solutions
  ✔ Key Market Presence: Mumbai, Delhi, and other metro cities.

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Market Outlook & Growth Strategy​

✔ Expansion in Urban Infrastructure Projects

• Government’s focus on smart cities & water conservation projects driving demand.

✔ Potential for Increased Collaboration Between Authum & WMEL

• Future stake increases or strategic partnerships could enhance synergies.

✔ Revenue & Profit Growth Expected

• With a strong project pipeline, WMEL is positioned for sustained revenue growth.

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Conclusion​

Authum Investment’s latest stake acquisition in WMEL strengthens its infrastructure investment portfolio, reinforcing its position in the high-growth urban infrastructure and EPC sectors. With WMEL’s strong financials, expertise in trenchless technology, and growing market demand, this acquisition is a strategic move towards long-term value creation.