CHENNAI: The Supreme Court has ordered Chennai-based engineering, and construction firm Shriram EPC Limited to pay Rs 125 crore, along with interest of 7.5% per annum to private equity firm Gaja Capital.
The apex court ordered the Chennai-based company make the payment within two months from Monday (29th January). The court further ordered a re-listing of the case in April 2024. SEPC said the order won’t have any financial impact, the company said in exchange filings on Friday.
“In any event, there would not arise any financial impact on this Company as it stands fully indemnified against any matters arising out of the Arbitral Award in terms of the indemnification agreement (dated) 29th September 2015 with Twarit Consultancy Services Private Limited and Shri Housing Private Limited.” SEPC share prices slided 0.84% and stood at Rs 26.01 at the end of Friday’s trade.
The issue pertains to Gaja Capital entering into a share purchase agreement with Shriram EPC and Twarit in 2015 to purchase the shares of Haldia Coke and Chemicals, a step down subsidiary of SEPC. The agreement valued at Rs 200 crore over several tranches. However SEPC and Twarit defaulted on the SPA, according to Gaja Capital. Gaja Capital got an arbitration order in its favour from Singapore International Arbitration Center (SIAC).