Nitco shares rally nearly 14% on entering MoU with HOABL for joint development of Alibaug land; key details to know

At around 2:43 PM, the stock was trading 4.67% higher at ₹100.78 per equity share. The scrip has gained 10% in the past week but lost 3% over the month.

While the shares hit a 52-week high of ₹126.38 apiece on August 25, 2025, they touched a year’s low of ₹64 per unit on March 13, 2025.

Details of the MoU

According to a regulatory filing dated August 24, the firm, along with its wholly owned subsidiary Nitco Realties Private Limited, and its promoter Vivek Talwar (collectively referred to as the owners), entered into an MoU with HOBAL.

Under the MoU, the owners have granted development rights of their land situated at Alibaug, specifically, all that piece and parcel of land in Thal and Lonare villages at Alibaug Taluka, Raigad, to HOABL for joint development.

The transaction is expected to generate consideration of approximately ₹1,300 crore to ₹1,500 crore over a period of five years, the filing further stated.

It added that the consideration will accrue to and be recognised in the books of Nitco Limited and Nitco Realties Private Limited over the relevant period, in accordance with the terms of the transaction and as per applicable accounting standards.

“In connection with the transaction, an amount of ₹9 crore has been received by cheque as a security deposit,” Nitco said.

Other updates

In a separate regulatory filing dated August 24, Nitco said it has fully recovered and settled the capital advance as on date that it had given to Saumya Buildcon Private Limited (SBPL) more than a decade ago.

More than 10 years ago, Nitco had provided a capital advance to SBPL in connection with the procurement of land. However, the proposed land transaction did not materialise and, consequently, the capital advance remained outstanding from SBPL.

As part of Nitco’s ongoing efforts towards “recovery and regularisation of long-outstanding advances”, it received the entire outstanding balance amount of ₹995.98 Lakhs from SBPL. Thus, no amount remains outstanding from SBPL in respect of the said capital advance, it stated.

In another filing, Nitco said that the Delhi High Court dismissed the writ petition it filed challenging the final Settlement Order dated November 14, 2019, directing payment of interest on the time-barred duty amount of ₹15.17 crore.

The court observed that the challenge to the show cause notice dated June 18, 2018, on the ground of limitation could not be reopened in the present proceedings and found no infirmity in the consequential direction for quantification of interest under Clause (e) of Para 51(ii) of the Final Settlement Order.

“The company, being aggrieved by the aforesaid order, proposes to challenge the same before the Hon’ble Supreme Court of India by filing a Special Leave Petition (SLP),” the filing read.

Nitco has a total market capitalisation of ₹2,424.43 crore as of August 25, 2026, according to data on the NSE.