NBCC Bags Rs 50 Crore Contract From Odisha Government; Announces Bonus Share Allotment

State-owned NBCC (India) Ltd. bagged a Rs 50 crore contract to construct a sports complex in Odisha.

In a regulatory filing on Wednesday, NBCC announced that it has secured a Rs 50 crore contract from the Sports and Youth Service Department of the Odisha government for the construction of an integrated sports complex in Dhamnagar, Bhadrak.

The company has also announced a significant move to enhance shareholder value by allotting 90 million fully paid-up bonus equity shares, according to an exchange filing.

The bonus shares will be distributed at a ratio of 1:2, meaning that for every two existing equity shares held as of the record date—Oct. 7, 2024—shareholders will receive one new bonus share of face value Rs 1. This initiative will increase the company's paid-up share capital from Rs 180 crores to Rs 270 crores.

As of Oct. 7, 2024, NBCC India reported reserves and surplus of Rs 1,959 crore available for capitalisation. The bonus shares are expected to be credited within two months of the board's approval, with a target date of Oct. 31, 2024, according to a filing with the BSE.

The scrip rose as much as 1.83% to Rs 117.40 apiece. It pared gains to close 0.75% higher at Rs 116.16 apiece, as compared to a 0.12% decline in the NSE Nifty 50 Index.

It has risen 116.18% on a year-to-date basis. The relative strength index was at 48.11.

Out of four analysts tracking the company, one maintains a 'buy' rating, one recommends a 'hold,' and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 13.4%.