Penny Stock Under Re 1 Locked in 2% Upper Circuit: EPC Company Bags Rs 1,171 Crore Contracts and Resolves Canara Bank Dues with Rs 10 Crore OTS

DSIJ Intelligence-2 / 03 Sep 2025/ Categories: Mindshare, Penny Stocks, Trending

The total settlement value is Rs 10 crore. An initial upfront payment of Rs 50 lakh, representing 5 per cent of the obligation, has already been made.

Dharan Infra-EPC share price came into focus after the company announced a series of corporate developments that are expected to strengthen its financial position and expand its project portfolio. On September 3, 2025, the stock hit its upper circuit limit of 2 per cent on NSE.

Skymax Infra Power Limited awarded Dharan Infra-EPC Limited contracts worth Rs 1,171.21 crore on August 30, 2025. These contracts include supply, installation, and EPC (Engineering, Procurement, and Construction) activities at Orvakal Industrial Park in Andhra Pradesh. The execution timeline for these projects extends up to March 31, 2027.

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Nearly 80 per cent of the total contract value is allocated to procurement of plant and machinery from international sources. This will be executed through Dharan Infra-EPC’s subsidiaries. While subsidiaries will handle procurement, revenues and liabilities will be consolidated into Dharan Infra-EPC Limited’s financial statements under Ind-AS norms.

On September 2, 2025, Dharan Infra-EPC signed a One-Time Settlement (OTS) Agreement with Canara Bank to resolve outstanding obligations. The total settlement value is Rs 10 crore. An initial upfront payment of Rs 50 lakh, representing 5 per cent of the obligation, has already been made. The remaining amount will be paid in five instalments, with the last payment scheduled within 90 days from the sanction date.

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The company stated that the OTS agreement would help restructure its financials, improve balance sheet strength, and reinforce credibility with lenders and stakeholders. While some loans remain classified as default, the company clarified that these are fully secured by collateral valued at nearly twice the principal outstanding. This reduces risk for lenders and ensures operational stability.

Following these developments, Dharan Infra-EPC share price hit a 2 per cent upper circuit on September 3. Investors are watching closely for the company’s future Quarterly Results and financial restructuring progress.

Disclaimer: The article is for informational purposes only and not investment advice.