NBCC (India) Shares Surge 11% Following Major ₹15,000 Crore Order from Srinagar Development Authority
News Mania Desk/Agnibeena Ghosh/9th August 2024
Shares of NBCC (India) experienced a notable surge of over 11 percent in intraday trading on Friday, driven by the company’s recent acquisition of a major contract valued at ₹15,000 crore from the Srinagar Development Authority (SDA). This substantial order marks a significant milestone for NBCC and has ignited investor enthusiasm, reflecting a strong performance in the stock market.
According to a filing with the stock exchange, the new project involves the development of a Satellite Township spanning 406 acres in Rakh-e-Gund Akshah, Bemina, Srinagar, Jammu & Kashmir. The Memorandum of Understanding (MoU) for this project was signed by Owais Ahmed from SDA and Sanjay Gupta from NBCC. The site for the project is strategically located near the upcoming Medi City and High Court Complex, enhancing its strategic importance. NBCC will serve as both the project management and marketing consultant, overseeing the project from its initial conceptual phase through to completion.
On the day of the announcement, NBCC’s stock climbed to a high of ₹188.50, reflecting an increase of 11.6 percent. This performance brings the stock within 5 percent of its all-time high of ₹198.25, which was recorded on July 9, 2024. Notably, the stock has surged over 304 percent from its 52-week low of ₹46.61, which was registered on August 14, 2023. Over the past year, NBCC’s stock has rallied 246 percent, with a remarkable 131 percent gain year-to-date in 2024.
The ambitious project will unfold in phases over the next five years and includes a diverse range of facilities. Planned developments include residential plots, villas, apartments, commercial offices, an indoor sports center, and luxury 5-star resorts equipped with modern amenities. In addition, the project will incorporate around 3,200 affordable housing flats, each with a size of 45 square meters. The development costs, which encompass site infrastructure, facilities, amenities, and affordable housing units, will be supported by revenue generated from the sale of villas and commercial properties, according to media reports.
Upon its completion, the Satellite Township is expected to transform into a New Town Centre for Srinagar’s residents and become a key attraction for tourists, as highlighted by a spokesperson from NBCC. This project is anticipated to significantly enhance the local infrastructure and provide numerous amenities to both residents and visitors.
In addition to this significant order, on August 1, NBCC received another contract from the Ministry of External Affairs to construct a regional passport office in Srinagar, valued at ₹50 crore. This additional order further underscores the company’s growing prominence and expanding role in large-scale infrastructure projects.
