Why This LIC-Backed Mid Cap Stock Is Surging 6% Today

Shares of NBCC India went up over 6% on Wednesday to hit a new 52-week high of ₹63.60.

What Happened: The surge today comes as the company on Tuesday evening announced signing a memorandum of understanding with the Kerala government.

The MoU pertains to the development of 17.9 acres of land parcel of Kerala State Housing Board at Marine Drive, Kochi, Kerala. The cost of the project is around ₹2,000 crore. The timeline for the project is yet to be finalised.

See Also: Why Vedanta Shares Are Upbeat Today

The announcement has helped the stock continue its eight-straight session-gaining streak. Earlier this week, the government-controlled company announced bagging another contract with the Indian Government Mint. The repair, renovation and construction project is for ₹20 crore.

The LIC-backed stock has been on a dream run this year. Just in the past month, the stock has gone up close to 30%. In the past six months, NBCC’s share price has climbed up 70%. LIC owns a 6.55% stake in the company.

Price Action: NBCC’s share price was up 4.44% to trade at ₹62.30 in early trade on Wednesday.

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