SEPC Shares Slip After Board Clears Rs 1,530 Crore Share-Swap Deal

Shares of SEPC Ltd traded lower on Wednesday, 8 July, after the company’s board approved the acquisition of up to a 90% stake in Abu Dhabi-based Avenir International Engineers and Consultants LLC through a share-swap transaction. 

The strategic move marks a significant step in SEPC’s plan to strengthen its presence in the global oil and gas engineering market while expanding its footprint across the Middle East.

Under the proposed transaction, SEPC will issue 153 crore equity shares on a preferential basis at Rs 10 apiece, valuing the deal at Rs 1,530 crore. Since the acquisition involves a share swap, the company will not incur any cash outflow. 

The issue price also represents a premium of nearly 51% over the stock’s current market price. Subject to regulatory, lender and shareholder approvals, the acquisition is expected to be completed by December.

Avenir International Engineers and Consultants is an engineering and design company that serves the oil and gas and civil infrastructure sectors in the UAE. The company holds established qualifications with Abu Dhabi National Oil Company (ADNOC) and reported a turnover of approximately AED 75 million in 2025. 

SEPC believes the acquisition will diversify its revenue base, enhance its engineering capabilities in the energy sector and provide access to high-value projects across the Middle East and North Africa (MENA) region.

Alongside the acquisition, SEPC’s board approved increasing the company’s authorised share capital from Rs 225 crore to Rs 600 crore, subject to shareholder approval. It also cleared a proposal to raise the borrowing and investment limits for loans, guarantees, securities and investments to Rs 3,000 crore, providing greater financial flexibility for future growth initiatives. 

In recent months, the company has also reported updates on EPC subcontract wins, rights issue-related developments and stronger FY26 financial performance through its regulatory filings, reflecting its broader expansion strategy.

Despite the long-term strategic rationale, investors remained cautious. At 12:23 pm, SEPC shares recovered from the day’s lows but continued to trade about 1.20% lower at Rs 6.60 and have declined roughly 34% so far this year.

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