Dilip Buildcon shares fell more than 3% in intraday trade on Thursday, October 29, erasing early gains, after the company secured a ₹688.23 crore order from the National Highways Authority of India (NHAI). According to reports from CNBC TV18, the company received a Letter of Award (LoA) from NHAI on a Hybrid Annuity Mode basis for the elevated corridor project in Solapur City, Maharashtra.
The order covers the construction of a 4-lane elevated corridor, including approaches, from Old Pune Naka to Boramani Naka on NH-65 in Solapur City, Maharashtra, as reported by CNBC TV18. The project is to be completed within 24 months, after which the company will then operate and maintain it for 15 years from the Commercial Operation Date (COD). Under the Hybrid Annuity Model (HAM), introduced by NHAI in 2016, the government pays 40% of a road project's cost during construction while the private developer funds the remaining 60% and receives annuity payments later.
Dilip Buildcon shares had initially risen more than 2% following the announcement on the exchanges but erased all gains to trade 3.2% lower at ₹373.50 as of 11:50 am, according to CNBC TV18. The stock is about 6% above its 52-week low of ₹352.80, which it hit in trade on Friday, October 23. The shares have fallen about 21% year-to-date and 22.5% over the trailing 12 months.
This marks the company's second major order win in October, following approval from the Petroleum and Natural Gas Regulatory Board (PNGRB) on Wednesday, October 7, to lay, build, operate and expand a ₹1,800 crore LPG pipeline from Paradip in Odisha to Raipur in Chhattisgarh, as reported by CNBC TV18.
