NBCC share price down despite ₹3,500 crore project win in Lucknow

In an exchange filing, the company informed that it has entered into a memorandum of understanding (MoU) with Sarkari Awas Nirman Avam Vitt Nigam Ltd (SANAVNL) to work as a project management consultant for an assignment in Lucknow.

SANAVNL has awarded "works related to execution of mixed land use development of Poorvi Vihar, Lucknow approximately admeasuring 588 Acre to NBCC as Project management Consultant and Whereas NBCC has agreed to undertake and complete all works accordingly on the terms and condition set forth in the MoU," NBCC said.

The PSU has been assigned the work of taking possession and planning, designing, and developing an encumbrance-free site measuring 50 acres as phase 1, valued at ₹3,500 crore.

"NBCC will execute the project on a 'deposit on work' basis, and the agency charge is 10% on the actual cost of the project plus GST and taxes as per applicable rates," the regulatory filing added.

NBCC share price

However, despite the order win, the company's shares were trading 5.7% lower at ₹79.67 per unit on the NSE at 1:52 pm.

The market capitalisation of the company stands at ₹21,510.90 crore.

On December 27, the company had won multiple orders worth ₹368.75 crore. A Project worth 24.38 crore was received to construct the Mehta Family School of Data Science and Artificial Intelligence at IIT Roorkee, Uttarakhand.

An order worth ₹300 crore was for developing Jawaharlal Nehru Commercial Complex Englishya Lines, Varanasi, Uttar Pradesh, on a self-sustainable model.

It also secured a 44.37 crore order from Power Grid Corporate of India for the construction and Furnishing of a 500–bed multi-storey 'Vishram Sadan' at AIIMS Gorakhpur.