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NBCC rallies on bagging AIIMS contract

The stock rallied 8% to Rs 1,016 on the BSE.

SI Reporter  |  Mumbai 

NBCC rallies after receipt of letter of award from AIIMS

Shares of National Buildings Construction Corporation (NBCC) has moved higher by 8% to Rs 1,016 on the BSE in otherwise subdued market after the company announced that all India Institute of Medical Sciences (AIIMS) has issued letter of award for the re-development of AIIMS Western Campus & Ayurvigyan Nagar, New Delhi.

It involves construction of 3000 flats in 2.5 years, with the financial implication of Rs 5,828 crore. The revenue generation for commercial viability of the project would be met by selling 10% of area, NBCC said in a BSE filing.

NBCC would be charging 10% of the final project cost as PMC fee and 1% for the marketing expenses on total fund realization from the sale/lease of built up area, it added.

The company said this proposal has been duly recommended in -principle by the Standing Finance Committee of AIIMS in its 209th meeting. MOU with NBCC will be signed after the project approval by the Union Cabinet.

At 03:24 PM, the stock was up 6% at Rs 994 on the BSE as compared to 0.19% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 1.26 million shares changed hands on the BSE and NSE.

First Published: Tue, November 24 2015. 15:28 IST