Order Win
SEPC Receives ₹673.32 Crore Letter of Acceptance from SAIL–IISCO Steel Plant for 4.08 MTPA Expansion Project
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SEPC Limited has received two Letters of Acceptance (LoAs) from Steel Authority of India Limited (SAIL) – IISCO Steel Plant, Burnpur, for Coke Oven BOP and Sinter Plant BOP packages related to the 4.08 MTPA Crude Steel Expansion Project. The combined order value stands at ₹673.32 crore and will be executed over 30–33 months.
PRICE-SENSITIVE TRIGGER
Event: Receipt of Letters of Acceptance (LoAs) from SAIL–IISCO Steel Plant.
Type: Order Win
Impact: Positive
Immediate Effect: Strengthens SEPC’s order book with a large domestic industrial project and enhances revenue visibility over the execution period.
Key Metrics:
- Total Order Value: ₹673.32 crore
- Sinter Plant BOP Package Value: ₹376.56 crore
- Coke Oven BOP Package Value: ₹296.77 crore
- Aggregate Project Size: ₹673.32 crore
- Sinter Package Execution Period: 33 months
- Coke Oven Package Execution Period: 30 months
Highlight:
- SEPC secured a combined ₹673.32 crore order from SAIL–IISCO Steel Plant for the 4.08 MTPA Crude Steel Expansion Project.
What Happened ?
SEPC Limited informed the stock exchanges that it has received Letters of Acceptance from Steel Authority of India Limited (SAIL) – IISCO Steel Plant, Burnpur, for two major Balance of Plant (BOP) packages associated with the 4.08 MTPA Crude Steel Expansion Project.
The contracts cover the execution of Coke Oven BOP works excluding civil and structural components, and Sinter Plant BOP works including civil and structural works. Both contracts were awarded by a domestic entity and form part of SAIL’s capacity expansion program at Burnpur.
Key Details
Contract Details:
- Awarding Entity: Steel Authority of India Limited (SAIL) – IISCO Steel Plant, Burnpur.
- Project: 4.08 MTPA Crude Steel Expansion Project.
- Contract 1: Coke Oven BOP excluding Civil & Structural Works.
- Contract 1 Value: ₹296.77 crore (net of input tax credit).
- Contract 1 Execution Timeline: 30 months from effective contract date.
- Contract 2: Sinter Plant BOP including Civil & Structural Works.
- Contract 2 Value: ₹376.56 crore (net of input tax credit).
- Contract 2 Execution Timeline: 33 months from effective contract date.
- Both contracts are domestic in nature.
- Effective contract date will be the earlier of contract signing date or 30 days from the LoA date.
Note:
- The contracts relate to strategic steel capacity expansion at SAIL–ISP Burnpur and provide long-term execution visibility for SEPC across engineering, procurement and construction activities.
Risk Analysis
Summary:
- While the order materially strengthens the company’s order pipeline, execution performance, project scheduling and cost management remain critical for successful conversion into revenue and profitability.
Key Risks:
- Long execution periods of 30–33 months expose projects to schedule-related risks.
- Potential fluctuations in raw material, subcontracting and logistics costs.
- Project milestone delays could impact revenue recognition timelines.
- Industrial project execution remains dependent on site readiness and customer coordination.
- Margin realization will depend on efficient project management throughout execution.
Worst Case Scenario:
- Delays in execution, cost overruns or changes in project scope could affect profitability and postpone revenue realization from the contracts.
Risk Level: Medium
Company Commentary
- SEPC has received Letters of Acceptance from SAIL–IISCO Steel Plant, Burnpur.
- The contracts are part of the 4.08 MTPA Crude Steel Expansion Project.
- The company will execute both Coke Oven BOP and Sinter Plant BOP packages.
- Additional disclosures have been submitted in accordance with SEBI requirements.
- The orders strengthen SEPC’s participation in large-scale domestic industrial infrastructure projects.
Official Exchange Filing: SEPC Limited
