NBCC gains after Union Cabinet approves sale of Air India's plot in Coimbatore to firm

NBCC gained 1.28% to Rs 995.20 at 14:25 IST on BSE after the Union Cabinet approved sale of plot measuring 0.99 acres belonging to Air India, located at Pankaja Mills Road, Coimbatore to the company.

The Union Cabinet made the announcement after market hours yesterday, 14 December 2015.

Meanwhile, the BSE Sensex was up 161.79 points, or 0.63%, to 25,656.16.

On BSE, so far 17,083 shares were traded in the counter, compared with an average volume of 52,888 shares in the past one quarter.

The stock hit a high of Rs 995.85 and a low of Rs 982.10 so far during the day. The stock hit a record high of Rs 1,214.50 on 6 August 2015. The stock hit a 52-week low of Rs 682.60 on 9 February 2015.

The stock had outperformed the market over the past one month till 16 December 2015, rising 8.39% compared with Sensex's 1.03% fall. The scrip had also outperformed the market in past one quarter, gaining 6.82% as against Sensex's 1.81% fall.

The large-cap company has an equity capital of Rs 120 crore. Face value per share is Rs 10.

The plot measuring 0.99 acres belonging to Air India located at Pankaja Mills Road, Coimbatore will be sold to NBCC for a consideration of Rs 19.81 crore.

The sale process was undertaken by way of e-tender through Metal and Scrap Trading Corporation (MSTC). As Air India was incurring losses for several years, it was decided by the Government that in order to augment its non-tax revenues, Air India should monetize by way of sale/ lease/joint venture its immovable properties which are lying unutilized. As a part of this exercise, the plot of land is being sold to NBCC.

On a consolidated basis, net profit of NBCC rose 12.6% to Rs 68.29 crore on 23.6% rise in net sales to Rs 1117.43 crore in Q2 September 2015 over Q2 September 2014.

NBCC 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 2015).

Powered by Capital Market - Live News