NESCO jumps on emerging as highest bidder for Bengaluru-Chennai expressway corridor

NESCO jumped 4.80% to Rs 1,043 after the company has emerged as the highest bidder for a project in the south zone on the Bengaluru-Chennai Expressway Corridor (Phase II) section.

The contract awarded by National Highways Logistics Management for the development, operation, and maintenance of wayside amenities across three sites on the expressway on a lease basis.

The company received the official notification regarding the allotment of the tender from the National Highways Authority of India subsidiary on Monday.

NHLML is a 100% owned Special Purpose Vehicle (SPV) of the National Highways Authority of India (NHAI), under the Ministry of Road Transport and Highways.

 

The project is scheduled for completion within 10 months from the appointed date, with a lease duration of 30 years. Additionally, the contract includes an option for a first right of refusal to extend the lease for another 30 years.

Nesco stated that the development of amenities at each site will cost approximately Rs 75 crore, totaling around Rs 225 crore.

The company expects to generate around Rs 350 crore in annualized revenue from all three sites combined starting from the fourth year of operations. The annual lease rent for the sites will be Rs 16.6 crore, with the option for annual increases based on the rise in the wholesale price index (WPI) and consumer price index (CPI), it added.

NESCO is mainly engaged in licensing premises in IT park buildings and providing related services, licensing premises for exhibitions and providing services to the organisers, manufacturing of machines and capital equipment, and hospitality and catering services.

The companys consolidated net profit surged 33.8% to Rs 93.75 crore in Q2 FY25 as against Rs 70.08 crore posted in Q2 FY24. Revenue from operations jumped 24.5% to Rs 177.76 in the quarter ended 30 September 2024.

Powered by Capital Market - Live News