Update on Earlier Intimation regarding the Credit Ratings received from CRISIL Ratings Limited and Infomerics Valuation and Rating Ltd. Detailed Letter is enclosed.
SEPC · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 4.7 pts more than Nifty Microcap 250 and 5.3 pts more than its Civil Construction peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Both CRISIL Ratings and Infomerics Valuation and Rating have downgraded SEPC Limited's credit ratings to 'D/D' (the lowest category, indicating default) from 'BB+/Negative' and 'A4+' respectively. CRISIL's downgrade covers total bank loan facilities of Rs 890.15 crore, while Infomerics covers Rs 882.50 crore of facilities. The downgrade was triggered by the company's failure to pay ~Rs 6 crore of term loan interest due on February 28, 2026, along with delays exceeding 30 days in clearing letter of credit dues and overdrawals in cash credit accounts. The root cause is a liquidity crisis stemming from a Madras High Court order dated February 19, 2026, attaching Rs 154 crore of SEPC's receivables in a legal dispute involving Gaja/TCPL, which led lenders to freeze the company's trust and retention account (TRA). The company had ~Rs 150 crore from a recent rights issue, but ~Rs 119 crore earmarked for NCD prepayment is now inaccessible while the TRA remains frozen.
This is a severe negative signal — a 'D' rating means SEPC is currently in default on its debt obligations, which will likely cause sharp stock price pressure, restrict access to new credit, complicate existing banking relationships, and raise serious concerns about the company's solvency and ability to continue operations. Shareholders should brace for heightened volatility and potential further deterioration.