SEPC shares jumped 4% on Wednesday, August 26, following the company's board approval of the restructuring of its wholly-owned UAE subsidiary, SEPC FZE, Sharjah. The stock rally reflects investor confidence in the strategic entry into the UAE petroleum trading business through a non-cash share swap. According to CNBC TV18, the Board has separately granted in-principle approval for SEPC FZE to acquire 100% of Wintality Petroleum FZE, a UAE entity engaged in the import, export and global trading of refined petroleum products. The transaction does not attract Section 188 of the Companies Act, 2013 or Regulation 23 of SEBI LODR, and neither Wintality Petroleum FZE nor its promoters are related to any Promoter, Director or Key Managerial Personnel of SEPC Limited or SEPC FZE.
The existing share capital of SEPC FZE, comprising one share of AED 150,000, will be subdivided into 1,500 shares of AED 100 each. As reported by CNBC TV18, a further 38,500 shares of AED 100 each will be issued out of capitalisation of reserves, creating a total equity pool of 40,000 shares. Of this enlarged pool, only 1,700 shares (4.25%) have been earmarked as non-cash consideration for the share swap, while the balance 38,300 shares will be issued to SEPC as fully paid-up shares by capitalisation of reserves. Dr. Ravichandran Rajagopalan has been nominated to the Board of the wholly owned subsidiary, and the Managing Director has been authorised to execute the Share Purchase Agreement and obtain the requisite approvals.
According to the restructuring plan, the balance 38,300 shares will be issued to SEPC as fully paid-up shares by capitalisation of reserves, leaving the parent with a post-issue holding of 95.75% in SEPC FZE, Sharjah. As reported by CNBC TV18, upon completion, Wintality will become a step-down subsidiary of SEPC Limited. The Board also approved the appointment of Ms. K B K Vasuki, a former Judge of the Madras High Court, as Additional Director (Non-Executive, Independent), subject to shareholder approval. The company has proposed holding its Annual General Meeting on Monday, September 28, 2026.
Commenting on the development, Mr. Venkataramani Jaiganesh, Managing Director, SEPC Limited, said: "This structure allows us to build scale in the UAE using value already created within our own subsidiary. We acquire a full operating platform in refined petroleum trading, retain 95.75% ownership of our Sharjah arm, and do so without any cash outflow from the parent company. It is a capital-efficient step towards broadening SEPC's international footprint beyond project execution." The acquisition represents a diversify-and-grow strategy that balances SEPC's volatile domestic EPC order pipeline with steady, working-capital-driven cash flows from petroleum trading. However, the petroleum trading business operates on thin margins and carries price volatility risks, though successful execution could improve consolidated topline and international revenue mix.
In August 2026, SEPC secured a major contract worth ₹854.57 crore from SAIL-ISP for pellet plant balance of plant works, extending its total order book to ₹10,670 crore as of June 30, 2026. The contract, awarded by Steel Authority of India Ltd's IISCO Steel Plant (ISP), Burnpur, is valued at ₹854.57 crore (net of input tax credit) and is to be executed within 32 months from the effective date of the contract. Additionally, in August 2026, shareholders approved the acquisition of up to 90% stake in Avenir International Engineers and Consultants LLC for ₹1,530 crore through a preferential share swap. The UAE refined petroleum trading sector remains highly active, supported by robust regional demand and strong trade corridors, making this strategic entry particularly timely for SEPC's international expansion strategy.
