SEPC Limited Reports Compliant Utilization of Rs. 350.00 Crore Rights Issue Proceeds for Q3 FY26

SEPC Limited has submitted its quarterly compliance statement to stock exchanges, confirming no deviations in the utilization of proceeds from its rights issue for the quarter ended December 31, 2025. The engineering procurement and construction (EPC) contractor raised Rs. 350.00 crore through the rights issue and has maintained full compliance with the stated objectives outlined in its Letter of Offer. Rights Issue Details and Fund Allocation The company completed its rights issue during June 09, 2025 to June 23, 2025, issuing 35,00,00,000 partly paid-up equity shares at Rs. 10 per share. The issue was structured with Rs. 5 per share on application and Rs. 5 per share on first and final call, received on December 2, 2025. Fund Allocation Details: Amount (Rs. Crore) Total Issue Size: 350.00 Gross Proceeds Received: 323.45 Issue Expenses: 4.62 Net Issue Proceeds: 318.83 Object-wise Fund Utilization Status The proceeds were allocated across five primary objectives, with varying levels of utilization during the quarter: Objective: Original Allocation Amount Raised Utilized Balance NCD Payment & Interest: 140.00 118.76 0.00 118.76 Debt Repayment: 15.00 14.24 1.00 13.24 Non-Fund Based Limits Margin: 15.00 12.72 0.00 12.72 Working Capital Requirements: 160.00 160.00 160.00 0.00 General Corporate Purposes: 15.00 13.10 6.11 4.49 Issue Related Expenses: 5.00 4.62 0.10 2.02 The working capital segment saw complete utilization of allocated funds, while other objectives maintained substantial balances for future deployment as per the company's strategic timeline. Monitoring Agency Validation Infomerics Valuation and Rating Limited, serving as the monitoring agency, issued a comprehensive report validating the company's fund utilization practices. The agency confirmed no deviations from the objects stated in the offer document and noted that all utilization was conducted through the Trust and Retention Account maintained with Punjab National Bank. Key validation points included: All fund utilization aligned with Letter of Offer objectives No material deviations requiring shareholder approval Proper documentation and certification by chartered accountants Compliance with SEBI regulations and monitoring requirements General Corporate Purpose Utilization During the quarter, SEPC Limited utilized Rs. 6.11 crore under general corporate purposes for specific operational requirements: Utilization Category: Amount (Rs. Crore) Employee Salary Arrears (December 2025): 2.01 Interest Expenses: 1.11 Vendor Payments: 2.99 Total Utilized: 6.11 Regulatory Compliance and Governance The quarterly statement was prepared in compliance with Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 82 of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The Audit Committee reviewed the statement and monitoring agency report, with formal approval by the Board of Directors on February 07, 2026. The company maintains Rs. 151.23 crore in its Trust and Retention Account for future deployment across the remaining objectives, demonstrating prudent financial management and adherence to regulatory frameworks. All fund movements were verified by B N C A & CO, Chartered Accountants, ensuring independent validation of the utilization process. SEPC Limited has secured a significant Letter of Intent from Telecommunications Consultants India Limited (TCIL), a Government of India enterprise, for implementing a smart prepaid metering project in Punjab's Central Zone under the Revamped Distribution Sector Scheme (RDSS). The project represents a major milestone for the engineering and construction company in expanding its power infrastructure portfolio. Project Details and Structure The comprehensive project encompasses the design, deployment, integration, commissioning, and long-term operation and maintenance of advanced metering infrastructure for Punjab State Power Corporation Limited (PSPCL). The initiative will be executed in consortium with Adya Smart Metering Private Limited, combining expertise from both organizations to deliver the sophisticated metering solution. Parameter: Details Project Value: ₹313.96 crore Execution Model: Design, Build, Finance, Own, Operate and Transfer (DBFOOT) Partner: Adya Smart Metering Private Limited Client: Punjab State Power Corporation Limited (PSPCL) Scheme: Revamped Distribution Sector Scheme (RDSS) Payment Structure: Back-to-back basis linked to milestones Strategic Impact and Revenue Model The DBFOOT structure provides SEPC with long-term revenue visibility through an annuity-based model. Payments will be made on a back-to-back basis, strategically linked to defined monthly, quarterly, and annual milestones during the post-operational Go-Live phase. This approach aligns with SEPC's strategy of building sustainable, long-term revenue streams while maintaining disciplined risk management. The project strengthens SEPC's order momentum and significantly expands its presence in power distribution and metering infrastructure. Smart metering represents a critical component of India's power distribution reforms, positioning SEPC to benefit from sustained public sector investment in digital infrastructure modernization. Management Commentary Commenting on the order win, Mr. Venkataramani Jaiganesh, Managing Director of SEPC Limited, stated: "This order reflects the continued confidence of our clients in SEPC's execution capabilities across complex infrastructure projects. Smart metering is a key pillar of power distribution reforms in India, and this project allows us to further expand our presence in this segment. The DBFOOT structure also aligns well with our strategy of building long-term, annuity-linked revenue streams, while maintaining a disciplined approach to risk and capital deployment." Company Performance and Positioning SEPC Limited, formerly Shriram EPC Limited, operates as a well-established EPC company offering turnkey solutions across Water & Wastewater, Roads, Industrial Infrastructure, and Mining sectors. The company specializes in designing, procuring, constructing, and commissioning large and complex infrastructure projects across India, serving Central and State Government agencies. Financial Metric: Nine Months FY26 Full Year FY25 Revenue: ₹796.89 crore ₹597.70 crore EBITDA: ₹83.60 crore ₹98.90 crore Net Profit: ₹39.81 crore ₹24.80 crore In the nine months ended December 2025, SEPC demonstrated strong operating momentum with consolidated revenue of ₹796.89 crore, surpassing its full-year FY25 revenue of ₹597.70 crore. The company's diversified portfolio and increasing exposure to annuity-based projects position it favorably to capitalize on industry growth opportunities in India's infrastructure development sector. 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