Ashoka Buildcon up 4% on concession agreement with TN govt

Moneycontrol Bureau

Ashoka Buildcon saw huge trading volume on Thursday with the stock rising more than 4 percent after the special purpose vehicle, incorporated by the company and GVR Infra Projects, executed a concession agreement with Tamil Nadu government on September 18.

The agreement is for the development of Chennai Outer Ring Road phase II from Nemilicheri in NH 205 to Minjur in Thiruvottiyur - Ponneri - Panchetti road on design, build, finance, operate and transfer annuity basis at Chennai, the company said in its filing.

In a joint venture, Ashok Buildcon and GVR hold 50 percent stake each.

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Meanwhile, the company last week emerged as the lowest bidder for the project in Chennai North & South regions of Tamilnadu Generation and Distribution Company Limited (TANGEDCO) on total turnkey basis aggregating Rs 609.62 crore from TANGEDCO.

The stock closed at Rs 48.10, up 4.23 percent amid hefty volumes on the Bombay Stock Exchange.

(Posted by Sunil Shankar Matkar)