Shares of Ashoka Buidcon Limited tanked 5 percent to Rs 240 in morning trade on August 5 despite being the lowest bidder for two projects of the Mumbai Metropolitan Region Development Authority (MMRDA) for around Rs 1,280 crore. This comes after the market crashed, plunging almost 3 percent, as global cues and recessionary fears dented sentiment.
At about 11:50 am, shares of the company were trading at Rs 245, down 3 percent from the previous close on the NSE.
The first project involves designing and constructing a creek bridge from Kolshet to Kalher, valued at Rs 289.6 crore, with a completion timeline of 42 months. The second project, worth Rs 991.2 crore, will see the construction of a creek bridge from Gaimukh to Payegaon, expected to be completed in 36 months.
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Both contracts are for engineering, procurement, and construction (EPC) work. Ashoka Buildcon operates in the construction and infrastructure facilities sector, utilizing both EPC and build-operate-transfer (BOT) models.
This is the second such order in quick succession. In June, the company was the lowest bidder for two projects worth Rs 2,153 crore from the Maharashtra State Road Development Corporation.
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The first project involves constructing a major bridge across Jaigad Creek, between Tawsal and Jaigad on the Revas-Reddi Coastal Highway in Maharashtra's Ratnagiri district. This project, valued at Rs 794.85 crore, will be executed under the engineering, procurement, and construction (EPC) model and is expected to be completed in 36 months.
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Ashoka Buildcon shares are on a stellar run, surging 81 percent since the start of the year.
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