NECC rallies 10% to hit upper circuit on plans to expand business

Reacting to the development, the stock hit its upper circuit of Rs 50.35 on the BSE

Shares of North Eastern Carrying Corporation (NECC) were locked in upper circuit on Monday after the logistic firm said it is looking to expand its existing 1.5 mn sqft warehousing capabilities over the next two years across 50 major Indian cities.

Reacting to the development, the stock surged as much as 9.93% to hits its upper circuit of Rs 50.35 on the BSE. So far, nearly 42 lakh shares of the company exchanged hands on the counter against its two-week average of 84,000 shares. 

NECC is an integrated logistics solutions provider with presence across India and Nepal also having an established operational set up in Bhutan and Bangladesh.

"It plans to expand its footprint from the current 1.5 mn sqft across 50 major cities over two years throughout India with its asset light approach. The warehousing and distribution segment is to be headed by Ramesh Krishnan, an industry veteran," NECC said in a regulatory filing.

The company is gearing up its overall capabilities with a special focus towards warehousing given the opportunity it expects to unfold in this segment post GST roll out.