Dilip Buildcon wins Rs 688 crore elevated corridor project in Maharashtra; stock reacts

Dilip Buildcon Ltd has been declared the L1 bidder by the National Highways Authority of India (NHAI) for a Rs 688.23 crore project involving the construction of a four-lane elevated corridor and approaches on NH-65 in Solapur City, Maharashtra.

The project involves construction of a four-lane elevated corridor, including approaches from Old Pune Naka to Boramani Naka on NH-65 in Solapur City. The project will be executed under the Hybrid Annuity Mode (HAM) and has a total length of 9.66 km.

The order has a broad consideration of Rs 688.23 crore, excluding GST. According to the company's disclosure, the project has been awarded by a domestic entity and the order-awarding entity is NHAI. The contract is classified as a General Contract (L1).

Dilip Buildcon shares fell 2.29% on Monday despite the company securing the NHAI project, touching a low of Rs 402.95, compared with the previous close of Rs 412.40. The fall in the stock came amid a crash in benchmark indices.

The project is scheduled to be completed within 24 months. Following completion, the project carries an operation period of 15 years from the commercial operation date (COD), according to the company's filing.

The elevated corridor will be developed on the NH-65 stretch in Solapur, connecting the Old Pune Naka area with Boramani Naka. The project is part of the company's road and highways EPC portfolio and adds another NHAI contract to its order book.

The company said the order was received in the normal course of business. It also disclosed that the promoter or promoter group has no interest in the entity awarding the order, while the contract does not fall within related-party transactions.

The order comes as Dilip Buildcon continues to execute infrastructure projects across the roads and highways segment. Under the HAM structure, the company will be responsible for construction of the specified highway infrastructure, followed by the contractual operation period after completion.