LIC-Backed Small Cap Stock Surges 5% After Bagging ₹1,500 Cr Order

Shares of NBCC India jumped back in the green on Thursday morning as the company bagged the massive order.

What Happened: The government-owned construction firm on Wednesday evening secured a substantial order worth ₹1,500 crore from the National Cooperative Development Corporation (NCDC). NCDC is a statutory body under the Ministry of Cooperation/Primary Agriculture Cooperative Society (PACS) in various states.

The order pertains to the construction of 1,469 warehouses and other agricultural infrastructure, marking the implementation of the world’s largest grain storage plan in the cooperative sector. The construction will be carried out at various locations across India. The specific period for the execution of the order or contract is yet to be determined.

See Also: This Tata Stock Has Surged 100% This Year, Analyst Sees Further Upside

Last month, the company had signed an MoU with the Institute of Chartered Accountants of India (ICAI). According to the terms of the MoU, ICAI has entrusted NBCC with the responsibility of “planning, designing, and execution of ICAI's buildings & renovation Works at various locations in India.”

The LIC-backed stock has been on a strong rally in the past few months. In the last six months, the stock has gone up over 90%. LIC owns a 6.55% stake in the PSU stock.

Price Action: NBCC India’s share price was up 5.17% to trade at ₹84.35 as the markets opened on Thursday.

Read Next: Tesla’s India Dream Hits New Hurdle? No Proposals For Subsidy On EV Imports Says Minister

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EquitiesNewsContractsMarketsMoversTrading IdeasNBCC