NBCC (India) Ltd. has been appointed as project management consultant by the National Company Law Appellate Tribunal for completion of 16 projects of Supertech Ltd., according to an exchange filing on Thursday.
NBCC will complete 16 projects with 49,748 houses in Uttar Pradesh, Uttarakhand, Haryana and Karnataka. The tentative construction cost of the project is approximately Rs 9,445 crore, including 3% contingency. The PMC fees were fixed at 8%, including 1% marketing fee, the public sector undertaking said.
In September, the state-owned firm moved the Supreme Court seeking to develop and complete Supertech's 17 stalled or partially built projects. Completion of the residential units was hit due to financial crisis faced by the embattled realty major, which led to insolvency proceedings since 2021.
Union Bank of India had initiated insolvency proceedings against Supertech under section 7 of the Insolvency and Bankruptcy Code on March 20, 2021, claiming a total amount of over Rs 431 core as on Jan. 31, 2021, along with accrued interest
Shares of NBCC jumped 1.69% during the day after falling as much as 3% on the National Stock Exchange. The stock was trading 1.4% lower at Rs 100.65 per share, compared to a 0.4% decline in the benchmark Nifty at 3:19 p.m.
The share price has risen 85% on a year-to-date basis. The total traded volume so far in the day stood at 1.17 times its 30-day average. The relative strength index was at 53.
Two out of the four analysts tracking the company have a 'buy' rating on the stock and as many suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 32.5%.
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