Shares of Chennai-based Shriram EPC Ltd. rose as much as 22 percent to Rs 26.45 after the company’s subsidiary in Sharjah, Shriram EPC FZE, received a Rs 1,530 crore contract in Oman.
The project involves construction of balance of plant for a 1.2 million tons per annum mini mill project for Moon Iron and Steel Company, Shriram EPC said in a press release. The contract is for a 32-month period. The debt for the project is being provided by a consortium of Omani banks, the company added.
The order will enable the company to expand its footprint in the Middle East, and diversify from the Indian market that is seeing a slowdown, T Shivaraman, managing director and chief executive officer of Shriram EPC said in a press release.
Given the slowdown in steel and metals business in India with capacity expansions on hold, this overseas order will enable us to maintain and strengthen our position in this sector.T Shivaraman, Managing Director and CEO, Shriram EPC