This SME Construction Company Takeovers ONGC’s Nandej Oil Field; Strock Rallies 4 Per cent - Know More About This Rs 33,498 Crore Mega Deal!

The stock price of the company has given returns of 30 per cent returns in the last 6 months.

RBM Infracon Limited (RBM), a prominent industrial services provider specializing in EPC contracts, mechanical and rotary equipment, and oil & gas extraction, has officially announced the takeover of the Nandej Oil Field Contract from Oil and Natural Gas Corporation (ONGC). The transition will take effect on 17th January 2025. The shares of the company soared by 4 per cent on Friday.

This development comes after RBM successfully executed the Oil and Gas Production Enhancement Contract, awarded by ONGC in September 2024, well ahead of the stipulated timeline. RBM will now assume full operational control of the Nandej Oil Field, a significant step forward in its strategic growth.

The project, valued at Rs 33,498 crore, includes Rs 33,371 crore allocated for crude oil and Rs 127 crore for gas production. The contract spans 15 years, with a possible extension of up to five additional years.

Key Details:

• Total Contract Value:  Rs 33,498 crore
• Breakdown:  Rs 33,371 crore for crude oil, Rs 127 crore for gas
• Duration: 15 years from 17th January 2025, extendable by 5 years
• LOI Date: 6th September 2024
• Agreement Signing Date: 25th November 2024

Earlier, the company announced that it has entered into three agreements with Tiwari Construction Co., amounting to a total value of Rs 3,00,68,703.05 (inclusive of all taxes except GST). The agreements were finalized on January 13, 2025.

The agreements encompass a range of services and projects located in Uttar Pradesh. The first agreement, valued at Rs 2,01,15,447.97, involves providing various services such as earthwork excavation using mechanical and manual means. The second agreement, worth Rs 47,84,039.08, includes the supply of various panels and sheets, such as aluminium composite panels, aluminium sheets, and acrylic plastic sheets. The third agreement, valued at Rs 51,69,216.00, entails providing and fixing spacer rings and related services.

The timeline for project completion varies for each agreement. The first project has a completion period of five months, the second project is scheduled to be completed within two months, and the third project is expected to take six months.

RBM Infracon Ltd currently has a market capitalisation of Rs 726 crore, with its stock priced at Rs 719. The stock has a 52-week high and low of Rs 1,049 and Rs 421, respectively. It trades at a price-to-earnings (P/E) ratio of 38.6, whereas the industry price-to-earnings (P/E) ratio is 35.3x, indicating stock trading at a premium, with a book value of Rs 116. The stock price of the company has given returns of 30 per cent returns in last 6 months.

Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.