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What is the story about?
Shares of Dilip Buildcon jumped to the day's highs on Monday, September 21, after the company was declared the L-1 bidder by REC Power Development and Consultancy (RECPDCL) for a transmission project in Maharashtra.
The project involves the development and operation of an intra-state transmission system for establishing a 400 kilovolt (kV) gas-insulated switching station at Solapur / Paranda in Dharashiv district of Maharashtra.
According to the company's exchange filing, the EPC component for Dilip Buildcon is valued at ₹1,265 crore, excluding GST.
RECPDCL is acting as the Bid Process Coordinator on behalf of Maharashtra State Transmission Utility. Under the project, Dilip Buildcon has been selected as the successful bidder to acquire 100% equity in the project special purpose vehicle (SPV) and act as the Transmission Service Provider (TSP).
The project will be developed under the Build, Own, Operate and Transfer (BOOT) model through the Tariff Based Competitive Bidding (TBCB) route. The scope includes development, financing, design, engineering, procurement, construction, testing, commissioning, operation and maintenance of the transmission assets.
Construction and commissioning of the project are to be completed within 24 months from the effective date, as per the request for proposal. The transmission system will then be operated for 35 years from the commercial operation date (COD).
The company said the contract is domestic in nature and does not constitute a related-party transaction. The promoter or promoter group also has no interest in the entity awarding the contract.
Having gained as much as 1.5% to the day's high of ₹431.25, shares of Dilip Buildcon have pared most of that advance to go back to the flat line at ₹426.2. The stock is down 10% so far this year.
Read more: JPMorgan sees Nifty rising towards 27,000 by year-end
The project involves the development and operation of an intra-state transmission system for establishing a 400 kilovolt (kV) gas-insulated switching station at Solapur / Paranda in Dharashiv district of Maharashtra.
According to the company's exchange filing, the EPC component for Dilip Buildcon is valued at ₹1,265 crore, excluding GST.
RECPDCL is acting as the Bid Process Coordinator on behalf of Maharashtra State Transmission Utility. Under the project, Dilip Buildcon has been selected as the successful bidder to acquire 100% equity in the project special purpose vehicle (SPV) and act as the Transmission Service Provider (TSP).
The project will be developed under the Build, Own, Operate and Transfer (BOOT) model through the Tariff Based Competitive Bidding (TBCB) route. The scope includes development, financing, design, engineering, procurement, construction, testing, commissioning, operation and maintenance of the transmission assets.
Construction and commissioning of the project are to be completed within 24 months from the effective date, as per the request for proposal. The transmission system will then be operated for 35 years from the commercial operation date (COD).
The company said the contract is domestic in nature and does not constitute a related-party transaction. The promoter or promoter group also has no interest in the entity awarding the contract.
Having gained as much as 1.5% to the day's high of ₹431.25, shares of Dilip Buildcon have pared most of that advance to go back to the flat line at ₹426.2. The stock is down 10% so far this year.
Read more: JPMorgan sees Nifty rising towards 27,000 by year-end
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