SEPC Limited has officially approved the acquisition of a 90% stake in Avenir International Engineers and Consultants LLC for ₹15.30 billion through a share swap arrangement. The board meeting held on March 23, 2026, concluded with formal approval of the strategic acquisition, marking a significant milestone in the company's international expansion plans.

Regulatory Compliance and Announcement

Following the board approval, SEPC Limited issued a formal press release on March 24, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was simultaneously communicated to both NSE and BSE, highlighting the strategic importance of this acquisition in expanding SEPC's global footprint in the high-growth Oil & Gas engineering sector.

Board Meeting Outcome

The Board of Directors meeting, which commenced at 2:00 PM IST and concluded at 3:40 PM IST on March 23, 2026, formally approved the acquisition of the Abu Dhabi-based engineering consultancy firm. The approval comes with conditions requiring consent from lenders and shareholders before the transaction can be completed.

Acquisition Parameters

The transaction involves acquiring 90% of AED 708 million based on IBBI valuation, equivalent to ₹1,530 crores. Avenir International, established in 2007 and headquartered in Abu Dhabi, specializes in Oil & Gas Engineering, FEED, and PMC services with a strong presence across the MENA region.

Target Company Profile

Avenir International Engineers and Consultants LLC demonstrates strong financial performance with consistent revenue growth. The company holds ISO 9001, ISO 14001, and ISO 45001 certifications and maintains an order book exceeding AED 500 million with reputed clients including ADNOC and DEWA.

Strategic Impact

The acquisition enables SEPC Limited to expand into the global Oil & Gas sector and strengthen its international presence while diversifying revenue streams into a high-value growing industry. Management emphasized that this represents a strategic shift from a domestic EPC-focused player to a globally diversified engineering and infrastructure company, creating synergies between Avenir's specialized engineering capabilities and SEPC's execution strength.

SEPC Limited has disclosed significant credit rating downgrades from two prominent rating agencies, marking a substantial deterioration in its credit profile. The company informed stock exchanges on March 10, 2026, about the downgrades received from CRISIL Ratings Limited and Infomerics Valuation and Rating Ltd.

Credit Rating Downgrades

The rating actions represent a sharp decline in the company's creditworthiness across both long-term and short-term facilities. Both agencies have moved the ratings to the 'D' category, which typically indicates default or expected default on financial obligations.

CRISIL Rating Rationale

CRISIL Ratings downgraded SEPC's bank facilities totaling ₹890.15 crore due to delayed interest payment obligations. The company failed to service approximately ₹6 crore of term loan interest due on February 28, 2026. Additionally, there have been delays exceeding 30 days in clearing letter of credit dues and overdrawals in cash credit accounts.

The rating agency noted that the Madras High Court ordered attachment of ₹154 crore of SEPC's receivables on February 19, 2026, in connection with ongoing legal proceedings involving Twarit Consultancy Services Pvt Ltd and GPE entities. This led to lenders freezing the trust and retention account, exacerbating liquidity mismatches.

Infomerics Rating Action

Infomerics Valuation and Rating Ltd downgraded facilities worth ₹882.50 crore across various categories. The rating committee reviewed and downgraded both long-term and short-term bank facilities to IVR D from their previous ratings.

Financial Performance Context

Despite operational challenges, SEPC reported improved financial performance in recent months. For the first nine months of fiscal 2026, the company achieved net profit of ₹40 crore on operating income of ₹781 crore, compared to ₹15 crore profit on ₹485 crore revenue in the corresponding previous period.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer T Sriraman signed the communication digitally on March 17, 2026, ensuring compliance with regulatory requirements for material information disclosure to both NSE and BSE.