Shares of NBCC Ltd., the state-run buildings and construction company, are trading with gains of over 4 per cent on Monday. The stock is trading ex-bonus in today’s trading session.
NBCC’s board approved the issuance of one fully paid-up equity share for every two existing shares, subject to shareholder approval at its Annual General Meeting. The record date for determining the eligibility of shareholders for the bonus shares was fixed as Monday, October 7.
This means that if you purchased shares of NBCC today, you would not be eligible for availing the bonus shares.
This is the first such proposal the company is considering after 2017, which the company had declared a 1:2 bonus issue as well.
On September 30, NBCC had announced that it had won an order worth nearly Rs 101 crore from the National Highways Authority of India (NHAI).
The contract is for Project Management Consultant (PMC) for the construction of a permanent office building concerning regional offices (ROs) cum project implementation units (PIUs) of the NHAI.
A few days before this order win, NBCC’s unit HSCC had won an order worth Rs 1,260 crore from the Ministry of Health and Family Welfare of the Government of India for the establishment work of an All India Institute of Medical Sciences (AIIMS) in Bihar’s Darbhanga.
However, the scope of the order and the execution timelines of the said order were not specified by the company. NBCC has also not disclosed the current size of its order book.
Earlier in September, NBCC had signed an MoU with cash-strapped MTNL Ltd. to collaborate on developing a positive land parcel of MTNL, measuring nearly 13.88 acres in New Delhi. The project is said to be valued at Rs 1,600 crore.
Nuvama remains bullish on the PSU stock as it believes that an improvement in order intake, execution and margins along with traction in real estate monetisation bode well for the company.
NBCC India is poised for growth with a strong order book of Rs 81,300 crore and a book-to-bill ratio of 7.6x, according to Nuvama’s report last month. The brokerage highlighted robust order inflows, with year-to-date wins at Rs 19,800 crore compared to Rs 23,500 crore in FY24, along with improved real estate monetisation as key factors driving its positive outlook.
“A buoyant realty cycle is resulting in improved opportunities for the company with many PSUs/government looking to monetise surplus land holdings,” it added.
Shares of NBCC are currently trading 3.8 per cent higher at Rs 116.91. The stock has more than doubled in value so far this year.
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