Infra stock in focus today on Rs 1,800-crore order win

Shares of Dilip Buildcon Ltd are in focus today after the infrastructure firm emerged as the successful bidder for a project worth Rs 1,800 crore. The stock recorded an intraday high of Rs 399 per share in the previous session. It ended flat at Rs  392.45 on BSE. Market cap of the firm stood at Rs 6375 crore.

The company received a letter of intent (LOI) from the Petroleum and Natural Gas Regulatory Board (PNGRB) for authorisation to lay, build, operate or expand a petroleum and petroleum products (LPG) pipeline from Paradip, Odisha, to Raipur, Chhattisgarh.

"Under the proposed Project, Dilip Buildcon Limited (DBL) will undertake the design, finance, development, construction, operation and maintenance of the proposed LPG pipeline infrastructure, subject to applicable approvals, authorisations and regulatory requirements of the Petroleum and Natural Gas Regulatory Board (PNGRB). The proposed pipeline infrastructure will facilitate the transportation of LPG to the bottling plants of various Oil Marketing Companies (OMCs), thereby intending, replacing the existing road-based transportation of LPG through tankers and enhancing road safety," said Dilip Buildcon.

The project will be executed through a Special Purpose Vehicle (SPV), with Dilip Buildcon Limited (DBL) holding the entire equity stake in the entity. The Engineering, Procurement and Construction (EPC) contract is proposed to be awarded to DBL, creating a business opportunity worth approximately Rs 1,800 crore, excluding GST. The EPC work is expected to be completed over a period of 36 months.

Dilip Buildcon Limited (DBL) is a prominent infrastructure company specialized in large-scale Engineering, Procurement, and Construction (EPC) projects. The company maintains a diversified presence across several critical infrastructure sectors, including roads and highways, mining, irrigation, tunnels, and urban development. DBL is characterized by its vertically integrated business model, which minimizes subcontracting by utilizing its own extensive fleet of machinery and an in-house workforce to execute projects.