Following the acquisition of a 76 percent stake in a UAE-based firm, the share price of an event management company surged 9.6 percent to Rs. 273.75 in the morning trading session of Thursday.
At 10:18 a.m., the shares of Exhicon Events Media Solutions Limited (EEMSL) were trading in the green at Rs. 258.9, up by 3.6 percent, as against its previous closing price of Rs. 249.8, with a market cap of Rs. 335.7 crore.
Exhicon Event Media Solutions informed the stock exchanges about signing a Memorandum of Understanding (MoU) for acquiring 76 percent of the stake in Green Branch Contracting & Land Scaping LLC, with a total cost of acquisition of AED 20,00,000.
Green Branch Contracting & Land Scaping LLC are independent contractors for maintenance and landscaping works, having offices in Abu Dhabi and Dubai. It also offers other services such as environmental management systems, modular systems, ground engineering, mechanical and electrical engineering.
With this acquisition, the company will support its sustainability goals and enhance its 360-degree service portfolio, allowing it to offer comprehensive solutions including temporary and permanent event venue construction, maintenance, and landscaping.
The company will also take the leverage of Green Branch’s clientele from the Exhibition & Event Sector in the UAE, creating new revenue streams and solidifying its position of 360-degree services offering. The transaction will be closed within 30 days from the date of signing of the Share Purchase Agreement (SPA).
Earlier on 24th April, EEMSL signed an SPA with United Helicharters Private Limited and Gulf Helicopters Company Q.S.C, a unit of Qatar General Petroleum Corporation, a Doha, State of Qatar-based Company, for the acquisition of 89.99 percent of the equity share of United Helicharters.
On a year-on-year basis, the company’s consolidated revenue from operations stood at Rs. 88.45 crore in FY23-24, increasing by 50.3 percent from Rs. 58.84 crore in FY22-23. The after-tax profit grew from Rs. 9.16 crore in FY22-23 to Rs. 14.22 crore in FY23-24, indicating a growth of 55.2 percent YoY.
The Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA grew from Rs. 20.12 crore in FY22-23 to Rs. 13.8 crore in FY23-24, representing a growth of 45.8 percent.
The stock has delivered nearly 35.8 percent of positive returns in one year, but has given negative returns of around 30.8 percent year-to-date.
Incorporated in 2010, Exhicon Events Media Solutions Ltd. is engaged in the business of providing a complete range of products and services for the exhibitions, conferences and events industry, along with providing solutions including media to integrated marketing solutions, temporary to permanent event infrastructure and management to organising.
Written by Shivani Singh
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