SEPC Limited (NSE:SEPC) disclosed on 5 August 2026, under Regulation 30 of SEBI (LODR) Regulations 2015, that it has received a Letter of Acceptance from Steel Authority of India Limited (SAIL) - IISCO Steel Plant, Burnpur, for a Pellet Plant BOP including Civil and Structural work valued at Rs 854.57 crore (net of Input Tax Credit).
Key Highlights
- SEPC Limited received a Letter of Acceptance dated 4 August 2026 from SAIL-IISCO Steel Plant, Burnpur, for Pellet Plant BOP including Civil and Structural work under Pellet Package-2.
- The total contract value is Rs 854,56,71,234 (net of Input Tax Credit), pertaining to the 4.08 MTPA Crude Steel Expansion Project at SAIL-ISP Burnpur.
- The contract is to be executed within 32 months from the effective date, which is the date of contract signing or 30 days from the LoA date, whichever is earlier.
- A Performance Bank Guarantee (PBG) must be submitted by SEPC within 30 days of contract signing, as stipulated by SAIL-ISP under the tender terms.
About the Company
SEPC Limited (NSE:SEPC), headquartered in Chennai, Tamil Nadu, is an engineering, procurement, and construction company operating across power, industrial, and infrastructure segments in India. The company executes turnkey projects covering civil, structural, mechanical, and electrical works, and has a registered office at ASV Hansa Tower, Greams Road, Chennai. It is listed on the NSE under the ticker SEPC and carries Scrip Code 532945 on BSE.
Announcement in Detail
The LoA, bearing reference number PROJECTS/EXPN-C/PP/BOP/LOA-725 and dated 4 August 2026, was issued by Abhishek Kumar Raj, Assistant General Manager (Projects), SAIL-IISCO Steel Plant, Burnpur, West Bengal. The contract covers "Pellet Plant BOP including Civil and Structural (Pellet Package-2)" forming part of the 4.08 MTPA Crude Steel Expansion Project. The total contract price is INR 854,56,71,234 (net of ITC), with a security deposit of INR 47,58,01,737.10 payable as a Performance Bank Guarantee.
The terms and conditions are governed by Tender No. PROJECTS/EXPN-C/PP/BOP/1220 dated 10 October 2025, including the Corrigendum dated 25 November 2025, and agreed commercial and technical deviations communicated in March 2026. The issuance of the LoA itself constitutes formation of the contract, with a formal Contract Agreement to be signed on non-judicial stamp paper within 30 days of the LoA date.
Impact on Investors
Investors will note that this order adds Rs 854.57 crore to SEPC Limited's order book, representing a domestic contract awarded by a central public sector enterprise. The filing shows no promoter or promoter group interest in SAIL-ISP, confirming an arm's-length transaction under the disclosed terms.
Shareholders will observe that contract execution is subject to timely mobilisation of resources and submission of the Performance Bank Guarantee within 30 days of contract signing. The 32-month execution timeline means revenue recognition will be spread over multiple reporting periods, and any delays or cost overruns in project delivery could affect the financial outcome of this contract, as is standard for long-duration EPC assignments.
Sector / Market Context
India's steel sector remains a significant driver of EPC and capital goods activity. The Government of India's National Steel Policy targets a crude steel capacity of 300 MTPA by 2030, with SAIL being one of the primary public sector undertakings tasked with capacity expansion under this framework. Pelletisation infrastructure is a key upstream requirement supporting higher-grade steel production, making Pellet Plant BOP contracts a recurring category of project awards within the domestic steel capital expenditure pipeline.