SEPC shares gain over 13% after MoU value of ₹3,300 crore higher than market cap

Shares of SEPC Ltd. gained over 13% on Monday, December 15, after the company said it entered a ₹3,300 crore mining consortium project.

SEPC, on Sunday, December 14, signed a Memorandum of Understanding (MoU) with Jai Ambey Roadlines Pvt Ltd. and Avinash Transport, who have formed a consortium — JARPL-AT to execute the mining project awarded by the South Eastern Coalfields Ltd. (SECL).

The project is in connection with the Rampur Batura Opencast Coal Mine Project in Madhya Pradesh at a value of around ₹3,300 crore, which is higher than the company's overall market capitalisation, currently at close to ₹2,000 crore.

The contract involves excavation, loading, transportation, unloading of soil and coal and surface mining activities. It is to be completed in 3,625 days or 10 years from contract execution, the company said.

On another note, last week, SEPC said its joint venture with Furlong received a letter of award for an aviation infrastructure project at Bihta Airport in Patna for 86 crore.

The contract has been awarded by JSC IA Vozrozhdenie India Private Ltd for the development of a new civil enclave. The scope of the project includes engineering, procurement, and construction work for a new integrated terminal building, construction of a utility building and associated structures, and execution of an elevated road.

SEPC shares gained 13.8% to hit an intraday high of ₹10.38 apiece on Monday. It has declined 51.2% this year, so far.

Also Read: Gems and jewellery exports rise nearly 20% in November; imports jump 36% on frontloaded demand