Vascon Engineers shares rise 4% as firm receives LoA worth Rs 352.91 crore for Jharkhand project

Shares of Vascon Engineers Ltd gained 4% today after the civil construction firm said it has received letter of acceptance (LoA) amounting to Rs 352.91 crore from Jharkhand State Building Construction Corporation Limited for remaining work of construction of medical college and upgrade of district hospital at Koderma. Vascon Engineers stock rose 4.08% to a high of Rs 76.75 on BSE. Market cap of the firm climbed to Rs 1639.44 crore.  

Total 3.04 lakh shares of the firm changed hands amounting to a turnover of Rs 2.29 crore on BSE. Vascon Engineers shares have a beta of 1.3, indicating very high volatility in a year. 

Vascon Engineers shares have gained 157% in one year and risen 111.80% since the beginning of this year. In terms of technicals, the relative strength index (RSI) of the Vascon Engineers stock stands at 80.4, signaling it's trading in the strongly overbought zone. Vascon Engineers shares are trading higher than the 5 day, 10 day, 20 day, 50 day and 200 day moving averages.  

The work has been awarded on ‘BOQ Basis’. It has to be completed within 30 months from the date of letter of acceptance.  

None of the promoter/promoter group has any interest in the aforesaid work. Further ahead, the aforesaid work doesn’t fall under the ambit of related party transactions, said the firm.  

The stock rose to a 52 week high of Rs 78.45 on October 9, 2023 and fell to a 52-week low of Rs 23.83 on March 28, 2023.   

The stock touched 52-week high in the previous session after the infra firm received a letter of intent (LoI) for works amounting Rs 262.19 crore from the state-owned Bridge and Roof Company. The LoI pertains to planning, designing, construction and maintenance of a Government Medical College at Kanker in Chhattisgarh. The company is also expected to execute IT networking related works at the site, it said. 

Vascon Engineers is a construction engineering company. The company is engaged in the business of engineering, procurement and construction services (EPC), real estate development and manufacturing of clean room partitions. Its segments include EPC, real estate development and manufacturing & BMS.   

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