SEPC Ltd to acquire up to 90% of UAE‑based Avenir via Rs 10 per share preferential allotment of 153 crore shares

What SEPC Ltd announced

On 8 July 2026, SEPC Ltd filed a Regulation 30 (LODR) press release with the BSE stating its intention to acquire up to 90 % of the shareholding in Avenir, a company incorporated in the United Arab Emirates. The acquisition will be executed through a preferential allotment of 153 crore equity shares at an issue price of Rs 10 per share.

Details of the preferential allotment

• Number of shares: 153 crore equity shares will be issued to the sellers of Avenir.
• Issue price: Rs 10 per share, the same price at which the shares will be allotted.
• Total consideration: The share issue translates to an equity raise of approximately Rs 1,530 crore.
• Target stake: Post‑allotment, SEPC aims to hold up to 90 % of Avenir’s equity, making it the controlling shareholder.

The press release did not disclose the exact valuation of Avenir, nor the composition of the remaining 10 % equity.

Transaction structure and approvals

The acquisition is structured as a preferential allotment under the Companies Act, 2013, meaning the shares are allotted to a specific party (the sellers of Avenir) rather than through a public offer. The filing notes that the allotment is subject to the following conditions:

1. Approval of SEPC’s Board of Directors.
2. Shareholder approval at the forthcoming Annual General Meeting.
3. Clearance from the Securities and Exchange Board of India (SEBI) and other regulatory authorities.
4. Compliance with foreign investment regulations, given Avenir’s UAE domicile.

The transaction will be completed once all statutory and contractual approvals are obtained, and the shares are allotted in accordance with the terms outlined in the preferential allotment agreement.

Key facts at a glance

Why this matters for investors

• Dilution impact: Issuing 153 crore new shares will increase the total share capital, potentially diluting existing shareholders unless they participate in the allotment.
• Strategic expansion: Acquiring a controlling stake in a UAE‑based firm signals SEPC’s intent to expand its geographic footprint and diversify its revenue streams.
• Regulatory scrutiny: The cross‑border nature of the deal brings additional compliance requirements, including foreign investment approvals, which could affect the timeline.
• Capital allocation: Raising roughly Rs 1,530 crore via equity rather than debt preserves the company’s leverage profile but may affect earnings per share in the short term.

Conclusion

SEPC Ltd’s press release outlines a significant equity‑raising move aimed at securing a controlling interest in Avenir. While the deal promises strategic entry into the UAE market, it hinges on multiple approvals and will result in a sizable increase in the company’s share base. Investors should monitor forthcoming shareholder and regulatory clearances to gauge the final shape of the transaction.