NBCC shares jump over 5% after it signs MoU with Kerala State Housing Board

Shares of National Buildings Construction Corporation (NBCC) jumped over 5 per cent in the opening trade on Wednesday i.e. September 6, 2023. The scrip opened at Rs 62 and jumped 5.53 per cent to trade at Rs 62.95. Earlier on Tuesday, the scrip had closed at Rs 59.65. 

The jump in share price came a day after the civil engineering construction company announced that it had signed a MoU with the Kerala State Housing Board.

The value of the order is worth Rs 2,000, the company said in an exchange filing. 

The project involves the development of 17.9 acres of land parcel of Kerala State Housing Board at Marine Drive, Kochi, Kerala. According to NBCC, the time period for the order execution is yet to be decided.

In the last five days, the scrip has gained over 20 per cent in the last five days. Also, it has made investors wealthier by around 28.27 per cent in one month. So far this year, the stock has yielded a positive return of over 52 per cent.

Earlier, it secured a contract worth Rs 20 crore from the government of India for renovation and construction at Mint, Mumbai.

The civil construction company recently announced the distribution of a 54 per cent dividend per share to its shareholders. The firm also fixed the record date as September 1 for the payment of the final dividend for the financial year 2022-23.

The 54 per cent dividend declared by the board of NBCC translates into Rs 0.54 per equity share having a face value of Re 1 each. A dividend is the distribution of earnings by a listed company to its shareholders.

The record date is announced to decide the eligibility of shareholders. A shareholder must hold the equity shares of the company in his/her demat account as on the record date to become the beneficiary of the corporate event.