PSU stock: NBCC rises 3% on Rs 3,700 crore Rajasthan MoU; all you need to know

Shares of NBCC (India) Ltd rose 3 per cent in Friday’s trade after the state-owned construction major announced signing a Memorandum of Understanding (MoU) with the Rajasthan State Industrial Development & Investment Corporation Limited (RIICO) for projects worth about Rs 3,700 crore.

NBCC shares rose as much as 2.8 per cent to hit the day’s high of Rs 110.92 on the BSE, against the previous close of Rs 107.80. The stock is currently trading nearly 52 per cent above its 52-week low of Rs 70.82.

In a filing with the stock exchanges, NBCC (India) Ltd said it has signed an agreement with the Rajasthan government for the development of the Rajasthan Mandapam Convention Centre and allied infrastructure near Jaipur International Airport on Tonk Road.

“This prestigious project marks a major milestone in the partnership between the Government of India and the Government of Rajasthan,” the company said in its filing.

The MoU signing ceremony in Jaipur was attended by Rajasthan Chief Minister Bhajan Lal Sharma, Industry Minister Col. Rajyavardhan Singh Rathore, Chief Secretary Sudhansh Pant, RIICO chairman Shikhar Agrawal, and NBCC CMD K.P. Mahadevaswamy, along with senior officials from both sides.

As the exclusive executing agency, NBCC will handle master planning, architectural design, engineering, construction, and international-standard marketing of the 95-acre land parcel. The proposed development will feature the Rajasthan Mandapam, a Unity Mall, as well as commercial and cultural infrastructure aimed at positioning Jaipur as a hub for global conventions and retail innovation.

Under the arrangement, RIICO will provide NBCC with an initial interest-free advance of Rs 50 crore. The balance will be funded through a self-financing model, involving the sale and lease of built-up spaces and plots, with additional support from public financial institutions if required.

The Rajasthan government will also extend financial support of up to Rs 635 crore specifically for the Rajasthan Mandapam. To ensure smooth implementation, a joint Empowered Committee has been set up to monitor designs, milestones, and execution quality.

NBCC said the project is expected to be completed within 30 months of securing statutory and internal approvals.

On the technical charts, RailTel shares are placed above their 5-, 10-, 20-, 30-, 150- and 200-day simple moving averages (SMAs) but below 50- and 100-day SMAs.