Dilip Buildcon shares jump 5% on double bonanza from Adani Road Transport, REC Power

Shares of infrastructure major Dilip Buildcon witnessed strong buying interest on Friday, surging over 5 per cent in early trade. The uptick follows a double bonanza for the company, which announced securing two distinct orders in the road and power transmission sectors.

Reacting to the development, the Dilip Buildcon stock gained 5.1 per cent to touch the day’s high of Rs 490.70 on the BSE. At last check at 11:50 am, the counter was trading 2.87 per cent higher at Rs 479.90 against its previous close of Rs 466.50 apiece.

In a significant regulatory filing on Friday, the Bhopal-based company announced that it has received a letter of award (LOA) from Adani Road Transport Limited (ARTL). The order, awarded on a back-to-back basis, is for the construction of Ganga Path connecting Sultanganj-Bhagalpur-Sabour Road on EPC Mode in the state of Bihar.

The employer for this project is the Bihar State Road Development Corporation Limited. The company disclosed that the project cost is Rs 3,400 crore (excluding GST), with a construction period spanning 42 months. 

The scope of work is comprehensive, covering design, engineering, procurement, construction, testing and commissioning of the project, which spans over 41 kilometres.

Adding to the order book, Dilip Buildcon has also been declared the L-1 (lowest) bidder for a transmission project by REC Power Development and Consultancy Limited (RECPDCL).

This project involves establishing a 400 kV substation at Mekhali along with associated transmission lines in the Belagavi District of Karnataka. 

While the RECPDCL order is valued at Rs 1,850 crore (excluding GST), it falls under the tariff-based annuity model. The construction and commissioning are slated to be completed within 24 months from the effective date.

The company noted that for the Karnataka project, it will acquire 100 per cent equity of the Project SPV to act as the Transmission Service Provider for a period of 35 years from the commercial operation date.