NBCC share price

NBCC (India) Ltd Shares Rise by 3%, Announces Major Achievements and Bonus Issue

Shares of NBCC (India) Ltd, a prominent government-backed construction company, rose by 3% on Monday, reaching Rs 192 per share from a previous close of Rs 186.35. The company, supported by significant stakeholders including the President of India and the Life Insurance Corporation of India (LIC), has a market capitalization exceeding Rs 34,000 crore. Known for its consistent dividend payout of 35%, NBCC has recently made several major announcements that further solidify its position in the market.

Bonus Shares Announcement

The Board of Directors at NBCC has approved a bonus share issue in the ratio of 1:2. This means that for every two fully paid-up equity shares of Re 1 each held, eligible shareholders will receive one additional fully paid-up equity share. The company has set Monday, October 07, 2024, as the record date to determine the eligibility of shareholders for receiving these bonus shares.

Major Property Sales and Strategic Achievements

In a significant achievement, NBCC has successfully sold 100% of its office space inventory at the World Trade Center (WTC) in Nauroji Nagar, New Delhi, and 100% of its retail and commercial space at Downtown Sarojini Nagar, New Delhi. The combined value of these sales is a staggering Rs 14,800 crore, demonstrating the company’s strong market presence and strategic execution.

• World Trade Center, Nauroji Nagar: The complete office space was sold for Rs 13,408.7 crore.
• Downtown Sarojini Nagar: The entire retail and commercial space was sold for Rs 1,390.92 crore.

NBCC played a crucial role in these transactions, acting as the Project Management Consultant and Marketing Consultant on behalf of the Ministry of Housing and Urban Affairs. The company’s expertise in project management and its strategic marketing approach were key to attracting significant buyer interest and ensuring the success of these high-value sales. These properties are part of self-sustaining projects, indicating their potential for long-term value and profitability.

About NBCC (India) Ltd

NBCC (India) Limited is a leading construction company in India, owned by the government and operating under the Ministry of Housing and Urban Affairs. The company offers a wide range of services across three key segments:

1. Project Management Consultancy (PMC): Involves civil construction projects across sectors like residential, commercial, healthcare, and educational institutions.
2. Engineering, Procurement, and Construction (EPC): Focuses on complex structures such as high-rise chimneys and cooling towers.
3. Real Estate Development: Engages in building residential townships, apartments, commercial office spaces, and shopping malls.

NBCC’s diversified service offerings have established it as a leader in the construction industry in India.

Financial Performance

NBCC’s financial performance has been strong, as reflected in its recent quarterly and annual results:

• Q1FY25 Results: Net sales increased by 11.32% to Rs 2,144.16 crore, and net profit rose by 38.4% to Rs 107.20 crore compared to Q1FY24.
• FY24 Annual Results: Net sales grew by 17.53% to Rs 10,432.64 crore, while net profit surged by 49.54% to Rs 414.27 crore compared to the previous fiscal year.

Order Book and Market Performance

As of June 30, 2024, NBCC’s order book has crossed Rs 81,000 crore. The company has set ambitious targets for the current fiscal year, aiming for a standalone turnover of Rs 10,000 crore and a consolidated turnover of Rs 13,000 crore.

Significant stakeholders in NBCC include the President of India, who holds a 61.75% stake, and LIC, which owns a 5.96% stake. The company’s stock has delivered multibagger returns of 260% in just one year, significantly outperforming the BSE Sensex, which has risen by 26.3% in the same period.

Conclusion

NBCC (India) Ltd continues to demonstrate its strength in the construction and real estate sectors, backed by strong financials, significant government support, and strategic project executions. The recent announcements, including the bonus share issue and the successful sale of properties worth Rs 14,800 crore, are likely to further bolster investor confidence and contribute to the company’s sustained growth.

FAQs:

1.What is the recent bonus issue announced by NBCC?

A. NBCC has announced a bonus share issue in the ratio of 1:2, where shareholders will receive one additional share for every two shares held.

2.When is the record date for NBCC’s bonus shares?

A. The record date for determining eligibility for the bonus shares is Monday, October 07, 2024.

3.What properties did NBCC recently sell?

A. NBCC successfully sold 100% of the office space at World Trade Center, Nauroji Nagar, and 100% of the retail and commercial space at Downtown Sarojini Nagar, New Delhi.

4.What is the total value of the properties sold by NBCC?

A. The total value of the properties sold by NBCC is Rs 14,800 crore.

5.What role did NBCC play in the sale of these properties?

A. NBCC acted as the Project Management Consultant and Marketing Consultant on behalf of the Ministry of Housing and Urban Affairs.

6.What is NBCC’s market cap after the recent stock price increase?

A. NBCC’s market capitalization is over Rs 34,000 crore.

7.What were NBCC’s financial results for Q1FY25?

A. NBCC reported a net sales increase of 11.32% to Rs 2,144.16 crore and a net profit rise of 38.4% to Rs 107.20 crore.

8.How has NBCC’s stock performed over the past year?

A. NBCC’s stock has delivered a 260% return in the past year, significantly outperforming the BSE Sensex.

9.What is the order book value for NBCC as of June 2024?

A. NBCC’s order book value as of June 2024 is over Rs 81,000 crore.

10.Who are the major stakeholders in NBCC?

A. The President of India holds a 61.75% stake, and LIC owns a 5.96% stake in NBCC.

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