Here's why Ashoka Buildcon shares jumped 5% in trade on January 7; details

Ashoka Buildcon share price: Construction engineering major Ashoka Buildcon shares rose up to 4.71 per cent to hit an intraday high of Rs 290.90 per share on Tuesday, January 7, 2025. 

 

The rise in Ashoka Buildcon share price came after the company announced that Ashoka Bowaichandi Guskara Road Private Limited (SPV), a wholly-owned subsidiary of the Company, has executed a Concession Agreement with National Highways Authority of India (NHAI) for the development of 4 lane economic corridor in West Bengal under Hybrid Annuity Mode (HAM). 

 

In an exchange filing, the company said, “Ashoka Buildcon Limited informs that Ashoka Bowaichandi Guskara Road Private Limited (SPV), a wholly owned subsidiary of the Company has executed a Concession Agreement with National Highways Authority of India (NHAI) on January 06, 2025, for the Project viz. “for Development of 4 lane Economic Corridor from Bowaichandi to Guskara-Katwa Road Section Km 89.814 to Km 133.000 of NH 116A (Package-3) in the state of West Bengal under Hybrid Annuity Mode.”

 

 

Under the terms of the project, the company will be responsible for the development of 4 lane Economic Corridor from Bowaichandi to Guskara-Katwa Road Section Km 89.814 to Km 133.000 of NH 116A (Package-3) in West Bengal.

 

The SPV has been incorporated as a wholly-owned subsidiary of the Company for the execution of this Project as per requirement of the Concession Agreement, Ashoka Buildcon said in a statement. 

 

The accepted bid price for the project was Rs 1,391 crore.

 

The project is expected to be completed in 910 days, including monsoon, Ashoka Buildcon said.

 

About Ashoka Buildcon

 

Ashoka Buildcon Ltd specialises in construction and infrastructure development, operating on an EPC (Engineering, Procurement, and Construction) and BOT (Build, Operate, Transfer) basis. The company is also involved in producing and selling Ready Mix Concrete (RMC). As a Fortune India 500 company, Ashoka Buildcon is a leading player in India's highway development sector.

 

The company operates as an integrated entity across EPC, BOT, and HAM (Hybrid Annuity Model) projects. Its key segments include Highways & Bridges, Power (EPC), Railway Works, Buildings (EPC), City Gas Distribution, and Smart Infrastructure. With experience in executing or currently handling 41 Public-Private Partnership (PPP) projects, Ashoka Buildcon has a broad footprint across more than 20 states in India.

 

The market capitalisation of the company is Rs 8,065.18 crore, according to BSE. The company falls under the BSE SmallCap category.

 

At 9:18 AM, shares of Ashoka Buildcon were trading 3.78 per cent higher at Rs 288.30 per share. In comparison, BSE Sensex was trading 0.38 per cent higher at 78,259.70 levels.