Shares of Dilip Buildcon fell more than 3% in intraday trade on Thursday, October 29, erasing early gains, after the company secured a ₹688.23 crore order from the National Highways Authority of India . The company received a Letter of Award from NHAI on a Hybrid Annuity Mode basis, according to a regulatory filing on Thursday.
The order covers the construction of a 4-lane elevated corridor, including approaches, from Old Pune Naka to Boramani Naka on NH-65 in Solapur City, Maharashtra, the filing said. The project is to be completed within 24 months, after which the company will then operate and maintain it for 15 years from the Commercial Operation Date .
Under the Hybrid Annuity Model , introduced by NHAI in 2016, the government pays 40% of a road project’s cost during construction. The private developer funds the remaining 60% and receives annuity payments later. This is the company’s second major order win in October.
On Wednesday, October 7, it received approval from the Petroleum and Natural Gas Regulatory Board to lay, build, operate and expand a ₹1,800 crore LPG pipeline from Paradip in Odisha to Raipur in Chhattisgarh. Stock reaction after the announcementDilip Buildcon shares had initially risen more than 2% following the announcement on the exchanges; however, it erased all its gains and was trading 3.2% lower at ₹373.50 as of 11:50 am.
The stock is about 6% above its 52-week low of ₹352.80, which it hit in trade on Friday, October 23. The shares have fallen about 21% year-to-date and 22.5% over the trailing 12 months.