Key Strategic Proposals

Acquisition of Avenir International

  • Proposed acquisition of up to 90% equity stake in Avenir International Engineers and Consultants LLC, Abu Dhabi
  • Acquisition method: Share swap transaction through preferential allotment of 153 crore equity shares of SEPC
  • Issue price: ₹10 per share
  • Total transaction value: ₹1,530 crore
  • Transaction structure: Zero cash outflow, completed through share swap
  • Expected completion timeline: December 2026

About Avenir International

  • Established in 2011
  • Engineering and design company serving oil & gas and civil infrastructure sectors in UAE
  • Possesses established qualifications with ADNOC
  • Reported turnover of approximately AED 75.01 million during 2025

Capital Structure Changes

  • Authorized Share Capital increase from ₹225 crore to ₹600 crore
  • Creation of additional equity shares subject to shareholders' approval

Financial Limits Enhancement

  • Enhancement of limits for loans, guarantees, securities and investments to ₹3,000 crore
  • Increase in borrowing limits to ₹7,500 crore

Financial Performance Context

SEPC Limited reported FY26 financial performance:

  • Total Income: ₹1,085.8 crore
  • EBITDA: ₹108.9 crore
  • Net Profit: ₹53.5 crore
  • Comparison to FY25: Total income increased from ₹646.0 crore, net profit more than doubled over previous year

Approval Process

  • All proposals subject to requisite shareholders' and regulatory approvals
  • Company will conduct Postal Ballot through remote e-voting
  • Alagar & Associates LLP appointed as Scrutinizer for voting process

Management Commentary

Mr. Venkataramani Jaiganesh, Managing Director, stated the proposals represent enablers for SEPC's next phase of growth. The acquisition is intended to complement engineering capabilities and provide access to UAE's oil & gas ecosystem, while capital and borrowing framework enhancements support evolving business requirements.

Company Background

SEPC Limited (formerly Shriram EPC Limited) is an EPC company offering turnkey solutions across Water & Wastewater, Roads, Industrial Infrastructure, and Mining sectors. The company specializes in design, procurement, construction, and commissioning of large infrastructure projects across India, serving Central and State Government agencies.