Axiscades Technologies up 5% on acquiring energy-storage solutions firm

Axiscades Technologies | CMP: Rs 562.50 | Axiscades Technologies was up 5 percent after the company said it had acquired a 100 percent stake in Epcogen, an engineering design and solutions company that work in the energy space, for Rs 26.25 crore. The acquisition has an additional 3-year earnout of Rs 7 crore based on performance. Through the acquisition, Axiscades can fortify its position in the energy markets in West Asia and North America

Axiscades Technologies was up 5 percent in the morning trade after the company said it had acquired a 100 percent stake in Epcogen, an engineering design and solutions company that works in the energy space, for Rs 26.25 crore.

The acquisition has an additional three-year earnout of Rs 7 crore based on performance. Through the acquisition, Axiscades can fortify its position in the energy markets in West Asia and North America.

“This strategic move extends beyond mere market penetration, as the acquisition not only opens doors for cross-selling among Axiscades' established oil & gas clientele and industrial product customers but also positions the company to capitalise on valuable diversification opportunities,” the company said in an exchange filing.

As of 10.30 am, the stock was quoting at Rs 562.50 on the NSE, up 5 percent from the previous close.

Epcogen has expertise in the oil & gas, refineries, petrochemicals, and renewable power sectors, with proficiency in intricate project engineering and end-to-end project execution. The firm focuses on long-duration energy storage solutions.

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Axiscades CEO and MD Arun Krishnamurthi said, "The acquisition of Epcogen seamlessly aligns with our growth objectives in the energy sector. This strategic move not only augments our competency but also propels our expansion as a service provider into the global energy industries.”

Axiscades Technologies has posted a multifold jump in consolidated net profit at Rs 21.08 crore in the September quarter, helped by increase in revenue.

The share has gained 84.92 percent this year. In comparison, the broader benchmark Nifty 50 has given investors returns of almost 15 percent.

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