NBCC shares hit upper circuit after approval to build projects worth Rs 10,000 crore

Shares of state-owned construction major NBCC surged around 5 per cent in the opening session on Thursday i.e. February 22. to. The stock opened with a gain of 4.09 per cent today and went on to rise around 5 per cent to hit the upper circuit of Rs 146.25. The counter had closed at Rs 139.30 in the last trading session. 

The company has informed exchanges that it has got the in-principal approval of the Greater Noida Authority to develop five Amrapali housing projects. 

"NBCC (India) Limited has obtained in-principle approval from the Greater Noida Authority for the development of unused and purchasable FAR in furtherance of the existing projects of Amrapali valuing Rs 10,000 crore," the company said in a stock exchange filing.

The five projects are -- Centurian Park, GH-05, Sector Tech Zone-IV, Greater Noida; Golf Homes, GH-02, Sector-4, Greater Noida; Leisure Park, GH-01, Tech Zone-IV, Greater Noida; Leisure Valley, GH-02, Tech Zone-IV, Greater Noida; and Dream Valley, GH-09, Tech Zone-IV, Greater Noida.

Amrapali had declared bankruptcy and deserted the projects, leaving thousands of homebuyers, who had invested their life-savings with the company, in the lurch.

The NBCC was assigned as the project management consultant (PMC) after a Supreme Court judgment in 2019 to finish the 25 stalled Amrapali projects, which include around 38,500 flats.

Earlier, the company secured a contract worth Rs 332 crore for infrastructure development works for Rani Lakshmi Bai Central Agriculture University.

NBCC is mainly engaged in project management consultancy (PMC) and real estate.

In a statement on Tuesday, NBCC said it will "undertake infrastructural development works for the Rani Lakshmi Bai Central Agriculture University across multiple campuses in Jhansi, Datia, Newari, and Morena/Khajuraho over the next three years." The project cost is Rs 331.9 crore.

The development works include the construction of boys' hostel, girls' hostel, and academic buildings comprising classrooms and labs for the Jhansi campus.

With agency inputs