SEPC shares surged over 7% on Tuesday following the company's announcement of its major acquisition in Abu Dhabi. According to Live Mint, the penny stock rallied as much as 7.09% to ₹4.98 on the BSE, representing a significant recovery from recent declines. At 11:25 AM, the stock was trading 2.80% higher at ₹4.78 on the BSE, showing continued positive momentum. This represents a notable turnaround from the stock's recent performance, which has seen significant declines across multiple timeframes.
Engineering, procurement and construction firm SEPC Ltd announced on Monday (March 23) that its board of directors approved the acquisition of a 90% stake in Avenir International Engineers and Consultants LLC, Abu Dhabi. According to reports from CNBC TV18, the acquisition will be executed through a share swap, with the total consideration for the 90% stake valued at AED 708 million, equivalent to ₹1,530 crore based on IBBI valuation. The transaction requires approvals from lenders and shareholders, with approvals expected within six months. As reported by Live Mint, the completion of the transaction is expected within six months, subject to necessary approvals from lenders and shareholders.
Avenir International, established in 2007, specializes in oil & gas Engineering, Front-End Engineering Design (FEED), and Project Management Consultancy (PMC) services, with a strong presence across the MENA region. As reported by CNBC TV18, the company has an order book exceeding AED 500 million and serves clients including ADNOC and DEWA. The company reported turnovers of AED 73.93 million (₹171.89 crore) in 2024, AED 69.17 million (₹156.73 crore) in 2023, and AED 31.91 million (₹71.92 crore) in 2022. It holds ISO 9001, ISO 14001, and ISO 45001 certifications and is an ADNOC-approved vendor.
The acquisition aims to expand SEPC Limited's international presence in the oil & gas sector and diversify revenue streams. According to Live Mint, the transaction is expected to enable SEPC's entry into the global Oil & Gas EPC and consulting ecosystem, strengthen its international execution capabilities and geographic diversification, provide access to high-margin, technology-driven engineering services, create a scalable platform for growth in the MENA region, and enhance long-term value creation through synergies in engineering, procurement, and project execution. The transaction does not involve any related party, and the promoter group has no interest in the target company.
Despite the positive acquisition news, SEPC shares have experienced significant declines across multiple timeframes. As reported by Live Mint, the penny stock has declined 40% in one month, plunged 52% on a year-to-date basis, and has slumped 63% in six months and fallen 68% in one year. The stock has also tanked 71% in two years and 57% in three years, indicating broader challenges beyond the current acquisition announcement. The recent 7% surge represents a significant recovery from these prolonged declines, suggesting investor optimism about the strategic expansion into the high-growth oil & gas sector.
