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What is the story about?
Shares of Ceigall India rose from the day's lows on Wednesday, September 30, after the company announced that it had won an order worth ₹214.52 crore from the Bihar government for alloting and leasing of stone blocks in Nawada district.
According to the company's exchange filing, the project has an annual value of ₹28.82 crore, with a 20% increase each year over the five years. The total cumulative value of the contract is ₹214.52 crore, excluding GST and other taxes.
The project involves mining stone blocks at Bhadokhara, Block-D, under Lot-4. The company will have a minable reserve of 4,19,300 cubic metres per year, or 20,96,500 cubic metres over five years.
The LoI, received by the company via email on September 29, was awarded by the Bihar government's Department of Mines and Geology through competitive bidding via e-reverse auction.
Ceigall India said the order is domestic and is not a related-party transaction. The company's promoter or promoter group has no interest in the entity awarding the contract, according to the filing.
Ceigall India diversifies beyond road construction
Earlier this year, Ceigall India said it was steadily diversifying its infrastructure business beyond traditional road construction and development operations, with a focus on renewable energy and transmission and distribution (T&D).
“Our total order book 73% is from a developer side, and since IPO, we have diversified ourselves so well, around 36% is from renewable and T&D business. Going forward also, we want to grow this order book in this space, and if you see out of ₹27,000 crore, already projects worth 25% we have already quoted in this field,” Chairman and Managing Director Ramneek Sehgal said.
The company has also received a Letter of Intent from REC Power Development and Consultancy Ltd (RECPDCL) for a power transmission project with an estimated total project cost of around ₹5,300 crore, including GST.
Shares of Ceigall India turned positive in intraday trading after the announcement, rising as much as 1.44% to ₹383 on the NSE. The stock has gained about 40% so far this year and over 25% in the trailing 12-month period.
Also Read: KPI Green Energy shares gain for fourth straight day; Announces ₹2,410 crore acquisition
According to the company's exchange filing, the project has an annual value of ₹28.82 crore, with a 20% increase each year over the five years. The total cumulative value of the contract is ₹214.52 crore, excluding GST and other taxes.
The project involves mining stone blocks at Bhadokhara, Block-D, under Lot-4. The company will have a minable reserve of 4,19,300 cubic metres per year, or 20,96,500 cubic metres over five years.
The LoI, received by the company via email on September 29, was awarded by the Bihar government's Department of Mines and Geology through competitive bidding via e-reverse auction.
Ceigall India said the order is domestic and is not a related-party transaction. The company's promoter or promoter group has no interest in the entity awarding the contract, according to the filing.
Ceigall India diversifies beyond road construction
Earlier this year, Ceigall India said it was steadily diversifying its infrastructure business beyond traditional road construction and development operations, with a focus on renewable energy and transmission and distribution (T&D).
“Our total order book 73% is from a developer side, and since IPO, we have diversified ourselves so well, around 36% is from renewable and T&D business. Going forward also, we want to grow this order book in this space, and if you see out of ₹27,000 crore, already projects worth 25% we have already quoted in this field,” Chairman and Managing Director Ramneek Sehgal said.
The company has also received a Letter of Intent from REC Power Development and Consultancy Ltd (RECPDCL) for a power transmission project with an estimated total project cost of around ₹5,300 crore, including GST.
Shares of Ceigall India turned positive in intraday trading after the announcement, rising as much as 1.44% to ₹383 on the NSE. The stock has gained about 40% so far this year and over 25% in the trailing 12-month period.
Also Read: KPI Green Energy shares gain for fourth straight day; Announces ₹2,410 crore acquisition
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