Seamec shares spike 13%, stock sees best session since Dec 2023; Here's why

Seamec shares surged over 13 per cent on Tuesday, crossing ₹1,000 again after securing a Letter of Award (LoA) and subcontract agreements.

 

Seamec's stock rose as much as 13.67 per cent during the day to ₹1,078 per share, the biggest intraday gain since December 29, 2023. The stock pared gains to trade 9.65 per cent higher at ₹1,039.8 apiece, compared to a 0.66 per cent advance in Nifty 50 as of 10:09 AM. 

 

Shares of the company extended gains to their second day while they have fallen 14 per cent this year, compared to a 0.7 per cent rise in the benchmark Nifty 50. The stock has risen over 35 per cent from its recent low of ₹780 it made in early March. Seamec has a total market capitalisation of Rs 2,644.2 crore, according to BSE data.   ALSO READ | Stock Market LIVE Updates: Sensex climbs 600 pts to 78,570; Nifty at 23,800; IT, Auto, FMCG gain

 

In an exchange filing on Monday, the company said that engineering conglomerate Larsen and Toubro awarded a LoA to the consortium of Seamec and Posh India Offshore for subsea installation associated with pipeline replacement project PRP VIII and Daman Upside Development Project. The work will be completed by May 2026.

  

The company also entered into a subcontract with Posh India Offshore Private for carrying out riser clamps, bowstring and other installation works in pipeline replacement project VIII and the daman upside development project of Oil and Natural Gas Corporation for $5.61 million. 

 

Further, an addendum was entered by the company with Asian Energy Services Limited for the extension of bimco charter hire period for firm period of 15 days at a revised charter hire rate of $42,000 per day, according to another filing on Monday.

 

In February this year, Seamec entered into a bimco charter party with Safeen Al Behar Company, Saudi Arabia, for charter hire of its vessel 'SEAMEC SWORDFISH' for working in the Kingdom of Saudi Arabia and UAE. The charter hire would commence within the window of March 1, 2025, to March 30, 2025. The total value for the firm period was $57.40 million.  ALSO READ | 1,000 Trump gold cards sold in a day, each worth $5 million: US officials

 

The company has the experience of operating three multi-purpose support vessels (MSVs) (including two from ONGC) for more than five years in the areas of sub-sea engineering and deep-sea diving services. It came out with a public issue in 1995 to part-finance the acquisition of two MSVs to meet long-term working capital requirements and to meet the expenses of the public issue.