Ashoka Buildcons arm get Rs. 1,000 crores worth order, stock gains

The shares of Ashoka Buildcon opened higher by more than 11 per cent in early trade on Monday after the company reported that its subsidiary received LoA from NHAI for road work in Telangana, on Saturday.

The company, in its press release submitted to the exchanges, stated that Ashoka Concessions Limited received the Letter of Award (LoA) from National Highways Authority of India (NHAI) for its four lanning project of National Highway (NH-161). The project work is from Kandi (Design km 0.00) (Km 498.250 of NH-65) to Ramsanpalle (Design Km 39.980/Existing Km 44.757). The road widening project is of 39.980 Km of length in the State of Telangana under Bharatmala Pariyojna on Hybrid Annuity Mode. The accepted bid project cost is Rs. 1,000 crores.

The above order was confirmed after the company reported that the subsidiary had emerged as Lowest Bidder just last week. The reaction to the stock price was due to the confirm status of its revenue growth. The latest order is also important for the company as its presence in the southern region is positive.

At 11.20 am stock price traded higher by nearly 5 per cent at Rs. 97.85 on BSE.