Shriram EPC shares surge nearly 20% intraday on bagging contract worth Rs 1,530 crore

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New Delhi | Updated: August 23, 2016 5:00:24 PM

Shriram EPC shares surged as much as 19.95 per cent in the early trade on Tuesday after the company announced that its 100 per cent subsidiary, Shriram EPC FZE, Sharjah has been awarded an overseas contract

bse sensex nse nifty shriram epcShriram EPC shares surged as much as 19.95 per cent in the early trade on Tuesday after the company announced that its 100 per cent subsidiary, Shriram EPC FZE, Sharjah has been awarded an overseas contract (Photo: Reuters)

Shriram EPC shares surged as much as 19.95 per cent in the early trade on Tuesday after the company announced that its 100 per cent subsidiary, Shriram EPC FZE, Sharjah has been awarded an overseas contract for an amount of $230 million (around Rs 1,530 crore). The order entails constructing the Balance of Plant (BoP) for a 1.2 MTPA Mini Mill Project in Sohar, Sultanate of Oman and the project execution period will be 32 months.

At 9.31 am, shares of Shriram EPC were trading 16.33 per cent up at Rs 25.65. The scrip opened the day at Rs 24 and has touched a high and low of Rs 26.45 and Rs 23.50, respectively, in trade so far. Later, shares of the company closed 10.66 per cent at Rs 24.40.

In a BSE filing, the comany said, “The customer (Moon Iron and Steel) is an Oman based company with investments from Gulf Investment Corporation, Oman Development fund and Sultan’s Special Forces Pension fund. The project debt is funded by a consortium of Omani banks.”

For the quarter ended June 30, 2016, the company reported a consolidated net loss of Rs 41.84 crore, down 1397.57 per cent, against net loss of Rs 2.79 crore in the corresponding quarter a year ago. Net sales of the company dipped by 37.60 per cent year-on-year to Rs 94.45 crore for the quarter under review against Rs 151.35 crore in the same period last fiscal.

Shriram EPC is engaged in the business of engineering, procurement, construction and project management services for power plants, renewable energy projects, process and metallurgical plants and municipal service sector projects.

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