NBCC Signs MoU For Land Development In Lucknow, Share Price Moves
The first phase of the project will involve the possession, planning, and development of 50 acres, valued at approximately Rs 3,500 crore.
NBCC (India) Ltd. has signed a Memorandum of Understanding with Sarkari Awas Nirman Avam Vitt Nigam Ltd. for a land development project in Lucknow. Under the agreement, NBCC will oversee the mixed-use development of Poorvi Vihar, a 588-acre site, serving as the project management consultant.
The first phase of the project will involve the possession, planning, and development of 50 acres, valued at approximately Rs 3,500 crore. The project will be executed on a "deposit on work" basis, with NBCC set to earn 10% agency charges on the actual project cost, plus applicable GST and taxes.
The project is expected to proceed as planned, with NBCC taking charge of all related works as part of its regular business activities.
NBCC (India), formerly known as National Buildings Construction Corporation Limited, is a government-owned company that provides infrastructure facilities and real estate development services.
Despite the new development, NBCC’s share price saw a decline of over 5% in today’s trading session.
NBCC Share Price Today
Share price of NBCC fell as much as 5.20%, before paring loss to trade 4.91% lower at Rs 80.34 apiece, as of 1:21 p.m. This compares to a 1.07% decline in the NSE Nifty 50.
The stock has risen 31.35% in the last 12 months. Total traded volume so far in the day stood at 1.8 times its 30-day average. The relative strength index was at 27.
Out of four analysts tracking the company, two maintain a 'buy' rating, and two suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 64.9%.
