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Shriram EPC jumps as subsidiary bags large overseas order

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Capital Market
Last Updated : Aug 23 2016 | 11:47 AM IST

Shriram EPC surged 14.51% to Rs 25.25 at 11:15 IST on BSE after the company's wholly owned subsidiary was awarded an order worth $230 million from Moon Iron & Steel Co, Oman.

The announcement was made during market hours today, 23 August 2016.

Meanwhile, the BSE Sensex was down 26.35 points, or 0.09%, to 27,959.19

On BSE, so far 7.11 lakh shares were traded in the counter, compared with an average volume of 22,300 shares in the past one quarter. The stock hit a high of Rs 26.45 and a low of Rs 23.50 so far during the day. The stock hit a 52-week high of Rs 38.55 on 6 January 2016. The stock hit a record low of Rs 19 on 8 June 2016. The stock had underperformed the market over the past 30 days till 22 August 2016, falling 5.16% compared with 0.66% rise in the Sensex. The scrip also underperformed the market in past one quarter, sliding 6.37% as against Sensex's 10.59% rise.

The small-cap company has an equity capital of Rs 330.63 crore. Face value per share is Rs 10.

Shriram EPC said that the company through its 100% subsidiary, Shriram EPC FZE, Sharjah has been awarded an overseas contract for an amount of $230 million (around Rs 1530 crore). The order entails constructing the Balance of Plant (BoP) for a 1.2 metric tonnes per annum (MTPA) mini mill project in Sohar, Sultanate of Oman and the project execution period will be 32 months, Shriram EPC said. 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 company said. The project debt is funded by a consortium of Omani banks, it added.

Shriram EPC reported net loss of Rs 41.84 crore in Q1 June 2016, higher than net loss of Rs 2.79 crore in Q1 June 2015. Net sales declined 37.59% to Rs 94.45 crore in Q1 June 2016 over Q1 June 2015.

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Shriram EPC offers design, engineering, procurement, construction and project management services for infrastructure projects.

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First Published: Aug 23 2016 | 11:23 AM IST

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