SEPC Stock Surges After Landing Rs 854 Crore SAIL Order for Major Steel Plant Expansion
Shares of Chennai-based engineering, procurement and construction (EPC) firm SEPC Ltd gained significantly on Thursday after the company secured a substantial new contract from the Steel Authority of India Ltd (SAIL). The order announcement prompted strong market reaction, with SEPC shares rising by more than 6 percent in intraday trading.The order involves work at SAIL's IISCO Steel Plant (ISP) in Burnpur and represents a major boost to the firm’s project pipeline. This contract validates SEPC’s capability to handle large-scale industrial infrastructure requirements within the domestic market.
Details of the Massive EPC Contract
SEPC Ltd has been awarded a Letter of Acceptance (LoA) by SAIL’s IISCO Steel Plant (ISP). The total value of this new contract stands at Rs 854.57 crore, excluding input tax credit. The project scope involves executing the Balance of Plant (BOP), including critical civil and structural works.The work is slated for a period spanning 32 months. This undertaking forms part of SAIL’s ambitious expansion programme aimed at increasing crude steel production to 4.08 million tonnes per annum (MTPA). The project relates specifically to the Pellet Plant Package-2 at the SAIL-IISCO Steel Plant, Burnpur.
Market Reaction and Stock Performance
The market reacted positively to the contract news, which was disclosed via an exchange filing. SEPC's stock saw a significant climb during intraday trading. At one point, the company touched an intraday high of Rs 6.72 per share on the NSE, marking a gain exceeding 6 percent.Later in the afternoon session, the stock moderated its gains and was trading at Rs 6.54, registering an appreciation of 3.48 percent as of around 1:30 pm. It is worth noting that SEPC had also finished previous trading sessions up by more than 6 percent.
Executive Viewpoint on Capacity Expansion
Venkataramani Jaiganesh, the Managing Director of SEPC, commented on the contract success. He stated that the order clearly reflects the confidence placed in the company’s established engineering and execution capabilities concerning large-scale industrial infrastructure projects.The MD further emphasized that this contract strengthens SEPC's standing within the industrial EPC segment. He highlighted that the successful acquisition provides considerable momentum to the firm's existing project portfolio. SEPC remains dedicated to expanding its portfolio by utilizing its technical expertise, strong execution capabilities, and established customer relationships across various infrastructure sectors.
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