Penny Stock Secures Mega Rs 1,171 Cr EPC Contract; Shares Locked In Upper Circuit Limit Under Rs 1

Dharan Infra-EPC Ltd has declared that it received work contracts from Skymax Infra Power Limited totalling around Rs 1171.21 crore, either directly or through its designated subsidiaries. The company has furthermore confirmed that the contracts that Skymax Infra Power Limited has granted pertain to EPC work and supply and installation at Orvakal Industrial Park in Andhra Pradesh, with completion dates set for March 31, 2027.

Following the above announcement, the shares of Dharan Infra-EPC Ltd on Wednesday, 3rd September, were locked in an upper circuit limit at Rs 0.46 per share on NSE with an upside gain of 2.22% from the previous close. The market cap of the company reached Rs 224.84 Cr.

"A significant portion of the contract scope-approximately 80% of the total value-relates to international procurement of plant and machinery, which will be undertaken through the Company's subsidiary entities. While execution responsibilities are contractually assigned to these subsidiaries, the revenues and liabilities arising therefrom will be duly consolidated in the financial statements of Dharan Infra EPC in - accordance with Ind-AS and applicable accounting standards," said Dharan Infra in a regulatory filing.

In order to settle its outstanding debts, Dharan Infra-EPC Limited (previously KBC Global Limited) has announced the signing of a One-Time Settlement (OTS) agreement with Canara Bank. The whole settlement value is set at Rs 10 crore, of which Rs 50 lakh has already been paid in advance, or 5% of the total amount due. The remaining amount will be paid in five installments, with the final payment being made within 90 days after approval.

"The aforementioned OTS signifies a constructive milestone in the Company's ongoing efforts to restructure its financial position and regularise its obligations. It shall have a positive bearing on the Company's balance sheet, reinforce its credibility amongst stakeholders, and serve as a foundation for improved financial discipline and growth readiness," Dharan Infra-EPC said in a stock exchange filing on Tuesday.

"The Company wishes to clarify that while certain loans remain classified under default, they are entirely secured by collateral, the assessed value of which is approximately double the principal sum of the outstanding facilities. This ensures adequate protection for the lenders and mitigates the risk of any material adverse impact on the Company's operational or financial integrity," Dharan Infra-EPC further informed stock exchanges on 2nd September.

Founded in 2006-07, Dharan EPC Infra Ltd is a publicly listed company that began its engineering and construction operations in Nashik, India. It is now well-known across the world for its Engineering, Procurement, and Construction (EPC) operations.