Dilip Buildcon secures LoA for two HAM projects worth Rs 2,439 crore in Karnataka

On Friday, Dilip Buildcon announced that it has received a letter of acceptance (LoA) from National Highways Authority of India (NHAI) on a hybrid annuity basis in Karnataka, cumulatively costing around Rs 2,439 crore. 

The projects were related to the four laning of Bangalore to Malur section of Bangalore Chennai Expressway on hybrid annuity model (HAM) and another for the four laning of Malur to Bangarpet section of Bangalore Chennai Expressway on hybrid annuity model under Bharatmala Pariyojana in the state of Karnataka. The two projects have a consideration of Rs 1,160 crore and Rs 1,279 crore, respectively. Both projects have a completion period of 24 months and an operation period of 15 years from the commercial operation date (COD). 

Dilip Buildcon has been one of the beneficiaries of India’s infrastructure push that drove investors’ interest in developers of roads to airports. The stock price of the company has surged by 33.63 per cent in the past month as compared to a 1.84 per cent decline in the benchmark index. 

On Friday, however, the share price of the company closed at Rs 669.40, down by 4.87 per cent or Rs 34.30 per share. Its 52-week high is recorded at Rs 719 while the 52-week low is Rs 193.40 on BSE.