PNN

Chennai (Tamil Nadu) [India], July 9: SEPC Limited (NSE: SEPC | BSE: 532945), a leading EPC company with proven expertise in industrial infrastructure, process plants, water and wastewater management, has announced a series of strategic proposals approved by its Board of Directors, subject to the requisite shareholders' and regulatory approvals. The approved proposals are aimed at strengthening the Company's capital base, enhancing financial flexibility, and expanding its international engineering presence.

A key highlight of the Board's approval is the proposed acquisition of up to 90% equity stake in Avenir International Engineers and Consultants LLC, Abu Dhabi, through a share swap transaction. The acquisition will be undertaken by way of a preferential allotment of 153 crore equity shares of SEPC at an issue price of 10 per share, aggregating to 1,530 crore, to the shareholders of Avenir. The transaction will be completed without any cash outflow and is expected to conclude by December 2026.

Established in 2011, Avenir International Engineers and Consultants LLC is an engineering and design company serving the oil & gas and other civil infrastructure sectors in the UAE. The company possesses established qualifications with ADNOC and reported a turnover of approximately AED 75.01 million during 2025. The proposed acquisition is expected to strengthen SEPC's capabilities in the oil & gas sector and significantly enhance its presence across the Middle East.

In addition, the Board has approved, subject to shareholders' approval, an increase in the Company's Authorised Share Capital from 2,250 crore, divided into 225 crore equity shares of 10 each, to 6,000 crore, divided into 600 crore equity shares of 10 each, providing the Company with enhanced capital-raising capacity to support its future growth plans.

Further, the Board has approved increasing the borrowing limits to 7,500 crore, enabling the Company to support its expanding business operations and long-term growth plans.

Building on its strong execution track record and sustained business momentum, SEPC continues to strengthen its growth platform through strategic initiatives aimed at expanding capabilities, enhancing financial flexibility, and broadening its international presence.

To obtain shareholders' approval for these proposals, the Company will conduct a Postal Ballot through remote e-voting, and has appointed Alagar & Associates LLP, Company Secretaries, as the Scrutinizer to oversee the voting process.

Commenting on the development, Mr. Venkataramani Jaiganesh, Managing Director, SEPC Limited, said: 'The proposals approved by the Board represent important enablers for SEPC's next phase of growth. As we continue to strengthen our execution capabilities and expand our market presence, it is equally important to build the financial and organisational capacity required to pursue larger and more complex opportunities. The proposed acquisition of Avenir International Engineers and Consultants LLC is intended to complement our engineering capabilities and provide access to the UAE's oil & gas ecosystem, while the proposed enhancement of our capital and borrowing framework is designed to support the Company's evolving business requirements. Together, these initiatives reinforce our long-term approach of building a stronger and more diversified engineering enterprise.'

About SEPC LimitedSEPC Limited (formerly Shriram EPC Limited) is a well-established EPC company offering turnkey solutions across Water & Wastewater, Roads, Industrial Infrastructure, and Mining sectors. The company specializes in the design, procurement, construction, and commissioning of large and complex infrastructure projects across India.

SEPC serves a wide range of clients, including Central and State Government agencies, and continues to play a key role in India's infrastructure development.

In FY26, the Company delivered Total Income of 1,085.8 Cr, EBITDA of 108.9 Cr, and Net Profit of 53.5 Cr, against Total Income of 646.0 Cr in FY25, with Net Profit more than doubling over the previous year.

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