The share price of National Buildings Construction Corporation Ltd (NBCC) jumped immediately after the company informed the exchanges it was awarded ‘Navratna status’ effective from June 23. The shares ended 4.41 per cent (or ₹13.45) higher at ₹318.45 at the BSE on Tuesday. The shares touched a peak of ₹332 and hit a low of ₹306.55 during the day.
Navratna after 55 years It is the 15th company to be awarded Navratna status, which entitles it to make investments worth ₹1,000 crore or 15 per cent of its net worth on a single project or 30 per cent of its net worth in the whole year (not exceeding ₹1,000 crore), without seeking Government permission.
NBCC Chairman and Managing Director Anoop Kumar Mittal told
Edelweiss, which maintains a buy rating on the stock, said the company will now have comparative advantages in terms of greater autonomy to compete and take business decisions.
Holding consultations NBCC is eyeing land parcels at strategic locations which are currently owned by sick PSUs and will decide on whether to take the merger, acquisition or joint venture route. Mittal said NBCC is holding in-house consultations to discuss the same. It will also hold talks with the Government.
On overseas plans, he said the company is currently in talks for projects in Oman (where it has an MoU with a local company), Botswana and Turkey. “Going forward, we will also look at Kazakhstan and UAE.”
“We are also planning to enter real estate although at a later stage,” Mittal said.
The company is currently engaged in redevelopment of East Kidwai Nagar, New Delhi, which is a ₹5,000-crore project. Apart from this, the company is awaiting Cabinet approval to start work on the three new redevelopment projects in Delhi — Netaji Nagar, Kasturba Nagar and Thyagraj Nagar.
“The company is also in talks with State Governments of Orissa, Rajasthan and West Bengal for similar redevelopment projects,” Mittal said.
Plans 1,000 housing units NBCC also plans to develop a total of 1,000 housing units across cities this year, apart from 200 service apartments in Lucknow.
Earlier this month, the company had announced financial results. It has posted a net profit of ₹257 crore in 2013-14, up over 24 per cent than in 2012-13.
While the total income rose to ₹4,098 crore, a growth of 25.71 per cent, the net worth of the company touched ₹1,141 crore.