Axiscades Technologies empowers energy solutions with the Epcogen acquisition
AXISCADES Technologies Limited, a prominent company in engineering solutions worldwide, is poised to significantly enhance its footprint in the comprehensive energy sector. According to the latest announcement, the company has declared its strategic procurement of Epcogen Private Limited.
Deal and Valuation
As per the details in the press release, this acquisition signifies a crucial juncture for both entities, wherein Axiscades secures Epcogen at a valuation of Rs 26.25 Crores, along with a potential additional Rs 7 Crores over three years contingent on performance. This action strongly emphasises the company’s dedication to fostering engineering brilliance and pioneering innovation within the energy domain.
The strategic partnership is set to expand its presence in the extensive energy sector substantially. By joining forces with Epcogen, Axiscades seeks to strengthen its foothold in the energy markets across the Middle East and North America. This calculated step transcends basic market entry, as the acquisition not only facilitates cross-selling among Axiscades well-established clientele in the Oil and gas sector and industrial product consumers but also positions the company to leverage advantageous diversification prospects.
Epcogen, headquartered in Hyderabad, India, brings a wealth of expertise primarily specializing in Oil and gas, Refineries, Petrochemicals, and Renewable Power. The company boasts extensive proficiency in intricate project engineering and end-to-end project execution. Notably, Epcogen is at the forefront of innovative solutions with a focus on climate-conscious emission control, exemplified by their expertise in tail gas treatment plants for refineries. Additionally, the company leads in the design and implementation of cutting-edge, long-duration energy storage solutions, showcasing a commitment to pioneering advancements in sustainable energy technologies.
KRSR Krishna, Founder, and Director of Epcogen, said, “This collaboration opens new growth avenues for the company, allowing us to fully capitalise on our delivery capabilities and market expertise. Together, we anticipate driving multi-fold growth and delivering unparalleled value to our clients. We are excited about this journey with Axiscades.
Arun Krishnamurthi, the CEO and MD of Axiscades, while commenting on the acquisition, said, "The acquisition of Epcogen seamlessly aligns with our growth objectives in the energy sector. This strategic move augments our competency and propels our expansion as a service provider into the global energy industry.
At the onset of the day, the Axiscades stock commenced trading at Rs 562.50 per share on the BSE, reaching intraday highs and lows of Rs 562.50 and Rs 538, respectively. As of the time of writing this article, it is still trading at Rs 562.50 per share on the BSE. Moreover, it has surged to the upper circuit price limit of 5%, resulting in no sellers willing to sell their shares, leaving potential buyers disappointed.
The current market capitalisation of the company stands at Rs 2,163 crore. Additionally, the stock has delivered impressive returns to its shareholders in the past year, generating approximately a 98% return and achieving a multibagger return of over 900% during the last three years. Furthermore, the stock is currently trading just below its all-time high level of Rs 607.75 per share, representing a 7% difference based on the current valuation.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.