DIIs-backed multibagger penny stock under Rs 20: This civil construction company is into expansion of business; details inside!

The stock gave multibagger returns of over 120 per cent from its 52-week low of Rs 8.83 per share.

SEPC Ltd, an engineering and construction company, is expanding its business into the United Arab Emirates (UAE) through the acquisition of a 75 per cent stake in ALMOAYYED Electrical Equipment & Instrumentation Systems LLC (AEEIS). AEEIS is a Bahrain-based company established in 2004 that specializes in electrical equipment, control & automation systems, field instrumentation systems, and transmission, protection & metering systems. They operate in both the UAE and Bahrain.

This acquisition is a strategic move for SEPC Ltd. to gain a foothold in the UAE market, particularly focusing on government projects, including those related to Oil & Gas giant ADNOC. The acquisition is being funded entirely by SEPC's promoter, Mark AB Capital Investment LLC, on an arm's length basis for a cash consideration of AED 1 million. The transaction is expected to be completed within 6 weeks.

AEEIS has shown steady growth in its revenue over the past 3 years, with a total revenue of USD 1,00,55,193 for the year ending December 2023. Their financials show a profit of USD 19,36,394.47 for the same period. This acquisition will not only provide SEPC with a presence in the UAE but also offer access to AEEIS's established client base and expertise in the Oil & Gas sector. Additionally, SEPC plans to rename the acquired entity to SEPC Middle East Engineering & Construction LLC, potentially to strengthen its position in securing projects across the GCC countries.

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About the Company

Today, shares of SEPC Ltd gained 2.14 per cent to Rs 19.57 per share from its previous closing of Rs 19.16. The stock’s 52-week high is Rs 26.73 and its 52-week low is Rs 8.83.

Shriram EPC Ltd (SPEC) is a leading service provider of integrated design, engineering, procurement, construction, and project management services for water and waste-water treatment plants, water infrastructure, process and metallurgy plants, power plants, and mines and mineral processing. Domestic Institutional Investors (DIIs) own a 25.16 per cent stake in the company and the majority of DIIs are Punjab National Bank (PNB), Central Bank of India, The South Indian Bank, Axis Bank, Bank of India (BOI), IndusInd Bank, Union Bank of India (UBOI), Bank of Baroda (BOB) and The Federal Bank Ltd.

SPEC has a market cap of Rs 3,000 crore. The stock gave multibagger returns of over 120 per cent from its 52-week low of Rs 8.83 per share. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.