Navratna PSU giant engaged in the business of civil construction, NBCC has bagged a massive Rs 14,800 crore by the sale of two commercial offices. This huge development comes ahead of the PSU's bonus issue announcement on August 30. NBCC is a multi-bagger and has skyrocketed by a whopping 138% on BSE ahead of the big reward.
NBCC Share Price:
The PSU stock ended at Rs 194.70 apiece, down by 0.61% on BSE after market hours on August 29. The market cap of the company is at Rs 35,046.00 crore.
However, the stock is near its 52-week high of Rs 209.75 apiece, while it has more than quadrupled from its 52-week low of Rs 50.99 apiece.
YTD, the stock has rallied by 138.05%, becoming the top multibaggers in the PSU basket in 2024 so far.
NBCC Big Update:
In its regulatory filing on August 29, NBCC announced that it made a remarkable achievement of selling 100% of the office space inventory at World Trade Center (WTC) Nauroji Nagar, New Delhi and 100% retail and commercial space at Downtown Sarojini Nagar, New Delhi. Together, the sale of the two commercial offices were worth approximately Rs 14,800 crore.
The sale of WTC, Nauroji Nagar, New Delhi marks a significant milestone for the company and demonstrates the exceptional demand for premium commercial space in India's capital. With this, NBCC has sold the entire 100% office space of 32,87,567 sqft, valuing Rs. 13,408.7 Crore of which PSU/Government entities bought 23,00,942 sqft having a sale value of Rs. 9,307.65 Crore and private entities bought 9,86,625 sqft having sale value of Rs. 4,101.07 Crore.
Further, for the sale of Downtown Sarojini Nagar, NBCC has successfully sold the entire inventory of 3.64 Lakh sqft valuing approx Rs. 1,391 Crore. The project includes 329 shops having a built-up area of approx 1,81,500 sqft and 300 offices having a built-up area of approx 1,84,400 sqft. The size of shops ranges from 138 sqft to 738 sqft while the office size ranges from 216 sqft to 882 sqft. This commercial project also includes a parking facility for approximately 675 vehicles.
NBCC Bonus Issue:
NBCC's board of directors are scheduled to meet on August 31, 2024, 4 to inter-alia "consider the proposal for issue of Bonus Shares to the equity shareholders of the company in the ratio, as it may deem fit by way of capitalization of reserves, subject to the Shareholders approval".
Bonus shares are one of the many corporate actions that listed companies announce on several occasions. Bonus shares are like incentives which are free of cost given to investors. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.
Some of the very popular bonus shares ratios are -- 4:1, 1:2, 3:5, 1:10, and 5:1.
BUY/SELL NBCC Stock?
As per Trendlyne data, the consensus recommendation from 4 analysts for NBCC (India) Ltd. is SELL. However, EPS is expected to grow by 57.0% in FY25. NBCC has surpassed the target price of Rs 176 of brokerage Geojit earlier. Currently, the 1-year average target price is Rs 142.25 apiece, hinting at nearly 27% potential downside ahead.
About NBCC:
NBCC is pioneering the work of redevelopment and is executing various projects on vacant/underutilized/unused land parcels and colonies in various parts of the country.
Founded in 1960 as a Govt. of India Civil Engineering Enterprise, NBCC with its Headquarter in Delhi, today, holds the status of Navratna CPSE, and has emerged as the undisputed leader in the Construction Sector on the back of its capabilities, innovative approach, adherence to the highest standard of quality, timely delivery and a dedicated workforce.
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