Ashoka Buildcons arm emerges L1 bidder, stock gains

The Nashik-based highway developer, Ashoka Buildcon Limited's subsidiary has emerged as the L1 bidder for a road construction project in Telangana.

The company holds 66 per cent in Ashoka Concessions Limited (ACL). It submitted its bid to the National Highways Authority of India (NHAI) for a project, designed for the four-laning of NH-161 from Kandi (design Km 0.000) (Km 498.250 of NH-65) to Ramsanpalle (design Km 39.980/existing Km 44.757) (Design Length = 39.980 Km) in Telangana under Bharatmala Pariyojna on Hybrid Annuity Mode. The ACL has emerged as the ‘Lowest Bidder’ at the financial bid opening meeting, held on November 18, 2019. The quoted bid project cost is Rs. 1,000 crores. In FY19, the Ashoka Concessions had won road HAM project worth Rs. 1,382 crores under Bharatmala in Karnataka.

As of end of second quarter of FY20, the company’s order back log stood at Rs. 7,490 crores, with road construction holding nearly 73 per cent of the total order book.

The stock price of Ashoka Buildcon gained as much as 3 per cent from day low on Monday. At 1.10 PM, the stock traded at Rs. 94.45 on BSE, reporting an increase of 0.21 per cent.