Penny Stock Below Rs 10 Secures Rs 855 Crore SAIL Order for Steel Expansion Project; Share Price Rises 4%

On Wednesday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index declining 70.90 points, or 0.29 per cent, to 24,544.00. Amid the market movement, SEPC share price rose 3.70 per cent to Rs 6.17 after the company announced that it had secured a major infrastructure contract worth Rs 854.57 crore from Steel Authority of India Limited (SAIL). The stock also witnessed strong trading activity, with volumes rising to 29.38 million shares, compared with an average volume of 19.76 million shares.

SEPC Receives Rs 854.57 Crore Letter of Acceptance from SAIL

SEPC Limited informed the stock exchanges that it has received a Letter of Acceptance (LoA) from Steel Authority of India Limited (SAIL) – IISCO Steel Plant (ISP), Burnpur, for the execution of Pellet Plant Balance of Plant (BOP) including Civil and Structural Works (Pellet Package-2) under the 4.08 MTPA crude steel expansion project at SAIL-ISP Burnpur.

The total value of the contract stands at Rs 854.57 crore (net of input Tax credit). The company stated that the order has been awarded by a domestic entity and will be executed in accordance with the terms and conditions specified in the original tender and subsequent corrigendum.

SEPC Project to be Completed in 32 Months

According to the filing, the project is scheduled to be completed within 32 months from the effective date of the contract. The effective date will be the earlier of the contract signing date or 30 days from the date of the Letter of Acceptance.

The company further stated that the project relates to the Pellet Plant BOP, including civil and structural works, forming part of SAIL's capacity expansion programme at its IISCO Steel Plant in Burnpur, West Bengal. The contract will be executed under the terms agreed during the tender and price negotiation process.

No Promoter Interest in Awarding Entity

SEPC clarified that neither the promoter nor the promoter group has any interest in the entity awarding the contract, and the transaction does not fall under related-party transactions.
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About SEPC

SEPC Ltd is an engineering, procurement and Construction (EPC) company engaged in executing infrastructure projects across sectors such as water, power, metallurgy, process industries and renewable energy. The company undertakes end-to-end project execution, including engineering, procurement, construction and commissioning for domestic and international clients.

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