NBCC gains after executing MoUs

NBCC (India) rose 0.68% to Rs 229.30 at 11:14 IST on BSE after the company executed memorandum of understanding with Rosinformexport, Department for International Development of India and ITI.

The announcement was made after market hours yesterday, 23 November 2016.

Meanwhile, the BSE Sensex was down 124.82 points, or 0.48%, to 25,926.99.

On BSE, so far 1.09 lakh shares were traded in the counter, compared with average daily volume of 1.97 lakh shares in the past one quarter. The stock hit a high of Rs 232.35 and a low of Rs 224.15 so far during the day. The stock hit a record high of Rs 299.20 on 5 October 2016. The stock hit a 52-week low of Rs 162 on 12 February 2016. The stock had outperformed the market over the past 30 days till 23 November 2016, falling 5.77% compared with the 7.26% decline in the Sensex. The scrip had also outperformed the market in past one quarter, falling 5.32% as against Sensex's 6.41% decline.

The large-cap company has equity capital of Rs 120 crore. Face value per share is Rs 2.

NBCC (India) entered into memorandum of understanding (MoU) with Rosinformexport LLC, a subsidiary of RT-Business Development, an investment company of Rostec State Corporation, a 100% state owned company of Russia, having expertise in ICT/Digital Products. NBCC & Rosinformexport shall collaborate to jointly participate in the smart city projects in India. This s strategic cooperation MoU and does not involve any joint venture (JV)/fancial implication.

Further, NBCC (India) entered into MoU with Department for International Development (DFID India) a ministerial department of UK, responsible for administering overseas aid with the goal to promote sustainable development and eliminate world poverty. NBCC & DFID shall collaborate with the endeavour to strengthen, promote and develop sustainable smart cities, integrated smart railway stations with green building technologies in India. This is strategic cooperation MoU and does not involve any JV/financial implication.

NBCC (India) also entered into MoU with Indian Telephone Industries, (ITI), a state owned manufacturer of telecommunications equipment in India and a central PSU under Department of Telecommunications, Ministry of Communication & IT, Government of India. NBCC and ITI agreed to jointly carry out feasibility study/preparation of DPR for developing ITT land Parcel of 30 acres at Electronic City Bangalore. The development of project through joint venture shall be undertaken on project specific agreement.

NBCC (India)'s consolidated net profit rose 1.42% to Rs 69.11 crore on 15.75% increase in net sales to Rs 1224.41 crore in Q2 September 2016 over Q2 September 2015.

NBCC (India) is a blue-chip Government of India (GoI) Navratna Enterprise under the Ministry of Urban Development, in construction sector. The GoI held 90% stake in the firm (as per shareholding pattern as on 30 September 2016).

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