Dilip Buildcon shares jump 12% on Rs 1,800 crore LPG pipeline project win
Dilip Buildcon will undertake the design, finance, development, construction, operation and maintenance of the LPG pipeline infrastructure, subject to the required approvals, authorisations and regulatory requirements from PNGRB.
- Sep 10, 2026,
- Updated Sep 10, 2026 10:20 AM IST
Shares of Dilip Buildcon Ltd jumped 12 per cent in Thursday's trade after the company said it has been selected as the successful bidder and received a Letter of Intent (LOI) for the development of an LPG pipeline from Paradip in Odisha to Raipur in Chhattisgarh.
The project involves an exclusive authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB) to develop pipeline infrastructure for the transportation of LPG, including financing, construction and operation of the pipeline. Dilip Buildcon will also be entitled to levy and collect the applicable tariff for transporting LPG up to the designated delivery point.
Following the development, Dilip Buildcon shares jumped 12.09 per cent to hit a high of Rs 439.90 over their previous close of Rs 392.45.
Under the proposed project, Dilip Buildcon will undertake the design, finance, development, construction, operation and maintenance of the LPG pipeline infrastructure, subject to the required approvals, authorisations and regulatory requirements from PNGRB.
The pipeline will facilitate the transportation of LPG to the bottling plants of various Oil Marketing Companies (OMCs), with the aim of replacing the existing road-based transportation of LPG through tankers. The company said this would also help enhance road safety.
The proposed pipeline will also be operated as a Common Carrier, allowing eligible OMCs and other users to access its capacity under the applicable PNGRB framework. Revenue from the project will be generated through the applicable Petroleum and Petroleum Products Pipeline Transportation Tariff for LPG transportation.
Importantly, Dilip Buildcon clarified that its role will be through a Special Purpose Vehicle (SPV) that will develop and operate the pipeline infrastructure and provide transportation services. The company will not be involved in the procurement, trading, distribution or sale of LPG, nor will it bear the associated commercial risks relating to LPG procurement and marketing.
The project will be implemented through an SPV in which Dilip Buildcon will hold 100 per cent equity. The Engineering, Procurement and Construction (EPC) works are proposed to be awarded to Dilip Buildcon, representing a business opportunity of approximately Rs 1,800 crore excluding GST. The EPC work is to be executed over 36 months.
According to the company's detailed disclosure, the project has an execution period of three years, followed by an operation period of 25 years. This means the company is looking at a long-term operating opportunity beyond the initial construction phase.
The contract is classified as a domestic project, with PNGRB named as the entity awarding the LOI. Dilip Buildcon also said that its promoter or promoter group companies have no interest in PNGRB, and the project does not fall under related-party transactions.
The company also said its trading window for insiders, designated persons and other specified connected persons will remain closed until 48 hours after the information is generally made available to the public, in accordance with its insider-trading code and applicable regulations.
Shares of Dilip Buildcon Ltd jumped 12 per cent in Thursday's trade after the company said it has been selected as the successful bidder and received a Letter of Intent (LOI) for the development of an LPG pipeline from Paradip in Odisha to Raipur in Chhattisgarh.
The project involves an exclusive authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB) to develop pipeline infrastructure for the transportation of LPG, including financing, construction and operation of the pipeline. Dilip Buildcon will also be entitled to levy and collect the applicable tariff for transporting LPG up to the designated delivery point.
Following the development, Dilip Buildcon shares jumped 12.09 per cent to hit a high of Rs 439.90 over their previous close of Rs 392.45.
Under the proposed project, Dilip Buildcon will undertake the design, finance, development, construction, operation and maintenance of the LPG pipeline infrastructure, subject to the required approvals, authorisations and regulatory requirements from PNGRB.
The pipeline will facilitate the transportation of LPG to the bottling plants of various Oil Marketing Companies (OMCs), with the aim of replacing the existing road-based transportation of LPG through tankers. The company said this would also help enhance road safety.
The proposed pipeline will also be operated as a Common Carrier, allowing eligible OMCs and other users to access its capacity under the applicable PNGRB framework. Revenue from the project will be generated through the applicable Petroleum and Petroleum Products Pipeline Transportation Tariff for LPG transportation.
Importantly, Dilip Buildcon clarified that its role will be through a Special Purpose Vehicle (SPV) that will develop and operate the pipeline infrastructure and provide transportation services. The company will not be involved in the procurement, trading, distribution or sale of LPG, nor will it bear the associated commercial risks relating to LPG procurement and marketing.
The project will be implemented through an SPV in which Dilip Buildcon will hold 100 per cent equity. The Engineering, Procurement and Construction (EPC) works are proposed to be awarded to Dilip Buildcon, representing a business opportunity of approximately Rs 1,800 crore excluding GST. The EPC work is to be executed over 36 months.
According to the company's detailed disclosure, the project has an execution period of three years, followed by an operation period of 25 years. This means the company is looking at a long-term operating opportunity beyond the initial construction phase.
The contract is classified as a domestic project, with PNGRB named as the entity awarding the LOI. Dilip Buildcon also said that its promoter or promoter group companies have no interest in PNGRB, and the project does not fall under related-party transactions.
The company also said its trading window for insiders, designated persons and other specified connected persons will remain closed until 48 hours after the information is generally made available to the public, in accordance with its insider-trading code and applicable regulations.