20-Nov-2023
2 mins read
In their recent meeting, the Board of Directors of Shriram EPC Limited came to a resolution to raise funds through a Rights Issue of Equity Shares. The capital infusion would be directed towards the company’s existing equity shareholders on November 28, 2023, the record date and capped at Rs 49.90 Crores in compliance with the prevailing laws.
The Board has proposed the issuance of up to 38,384,615 Equity Shares at a per share price of Rs 13. Each eligible equity shareholder would be entitled to purchase 1 new share for 36 shares they already hold, based on the stated Rights Entitlement Ratio.
Shriram EPC Limited Product Portfolio
Founded in the year 2000, Shriram EPC Limited has emerged as a frontrunner in delivering end-to-end solutions within the Engineering, Procurement, and Construction (EPC) domain. Renowned as SEPC Limited, the company offers a diverse range of multi-disciplinary services and adept project management solutions.
Diverse Business Portfolio: SEPC Limited operates primarily in two key business segments. The first encompasses infrastructure projects, notably focusing on water and sewer developments alongside road construction initiatives. The second area delves into process and metallurgical undertakings, encompassing an array of ventures such as process plants, steel plants, mine development, and power plant constructions.
Stringent Quality Certifications: Adhering to the highest standards, the company boasts multiple certifications, including ISO 9001-2015 QMS DAkkS, ISO 9001-2015 QMS NABCB, ISO 45001-2018 DAkkS, and ISO 14001-2015 EMS DAkkS. These certifications underscore SEPC’s commitment to quality management and environmental sustainability.
Core Competencies: The nucleus of SEPC’s success lies in several pivotal areas. Their proficiency in delivering top-notch design and engineering solutions has propelled the company to a distinguished position, both domestically and on the global stage. Additionally, SEPC has strategically established a robust presence in sectors poised for substantial growth.
Robust Leadership and Management: A cornerstone of SEPC’s resilience is its adept and experienced management team. Their extensive knowledge and leadership have steered the company through some of the most challenging phases within the EPC industry, contributing significantly to its sustained growth and success.
Financial Performance of Shriram EPC Limited (Rs in Crores)
| Period Ended | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 2,001.82 | 2,223.22 | 2,416.29 |
| Revenue | 398.88 | 340.59 | 606.14 |
| Profit After Tax | -4.9 | -263.7 | -179.47 |
| Net Worth | 1,088.09 | 739.47 | 1,005.11 |
| Reserves and Surplus | -237.96 | -227.17 | 21.84 |
| Total Borrowing | 405.83 | 978.27 | 835.89 |
Important Dates for Shriram EPC Limited Rights Issue
| Issue Open | December 6, 2023 – December 18, 2023 |
| Security Name | SEPC Limited |
| Issue Size (Shares) | 38,384,615 |
| Issue Size (Amount) | Rs 49.90 Crores |
| Issue Price | Rs 13 per share |
| Face Value | Rs 10 per share |
| Listing At | BSE, NSE |
| Terms of Payment | Rs 13/- per Rights Equity Share including premium of Rs 3/- per Rights Equity Share shall be payable on Application. |
| Entitlement | 1 Rights Equity Share for every 36 Equity Shares (fully paid-up) held on Record Date |
| Last Date to buy shares | 24-Nov-23 |
| Record Date | 28-Nov-23 |
| Deemed Date of Allotment | 22-Dec-23 |
| Credit Date | 27-Dec-23 |
| Listing Date | 29-Dec-23 |
The Objectives of Shriram EPC Limited Rights Issue
Shriram EPC intends to allocate the net proceeds from the rights issue to support the following purposes:
- Enhancing both current and additional working capital needs of the Company
- Fulfilling general corporate objectives
Lead Managers for Shriram EPC Limited Rights Issue
The lead manager for Shriram EPC Limited Rights Issue is yet to be announced.
How to Apply for Shriram EPC Limited Rights Issue
Wait for the public issue to open for subscription, and then click on this link to apply for the Shriram EPC Limited Rights Issue with Bigul: https://www.bonanzaonline.com/.
How to Check the Allotment Status of Shriram EPC Limited Rights Issue
The registrar for Shriram EPC Limited Rights Issue is Cameo Corporate Services Limited.
FAQs
1. What is the upcoming Rights Issue by Shriram EPC Limited?
Shriram EPC Limited has decided to raise funds by offering a Rights Issue of Equity Shares. The aim is to infuse capital up to Rs 49.90 Crores from the company’s existing equity shareholders.
2. How many Equity Shares will be issued, and at what price?
The Board of Shriram EPC Limited has proposed issuing up to 38,384,615 Equity Shares. The price per share has been set at Rs 13.
3. What is the Rights Entitlement Ratio for the issue?
The Rights Entitlement Ratio is set at 1:36, meaning that each eligible equity shareholder would be entitled to purchase 1 new share for every 36 shares they already hold.
4. Who are the lead managers for the Rights Issue?
The lead manager for the Rights Issue is yet to be announced.
5. What is the financial performance of Shriram EPC Limited?
Financial highlights include growth in total assets, total revenue, profit after tax, net worth, reserves and surplus, and total borrowings from 2021 to 2023, as provided in the provided data. Shriram EPC Limited’s revenue rose by 17.11%, and PAT grew by 98.14% from the financial year ending on March 31, 2022 to March 31, 2023.
6. What are the important dates related to the Rights Issue?
The issue opening date is from December 6, 2023 to December 18, 2023.
7. What will be the use of the net proceeds from the Rights Issue?
Shriram EPC intends to allocate the net proceeds from the rights issue to enhance current and additional working capital needs and fulfil general corporate objectives.
8. How can I apply for the Shriram EPC Limited Rights Issue?
Once the public issue opens for subscription, you can apply for the Shriram EPC Limited Rights Issue via this link: https://www.bonanzaonline.com/.
9. How can I check the allotment status of Shriram EPC Limited Rights Issue?
The registrar for the Rights Issue is Cameo Corporate Services Limited.
Please stay updated for the latest information.