Shares of Ceigall India Limited spiked to a day high of Rs 374.85 on NSE on Wednesday, 10 June, after the company’s project arm secured a concession agreement with the National Highways Authority of India for a highway project in Punjab. The stock pared its early gains and was trading nearly flat by midday.

The agreement was signed on 9 June by Ceigall Ambala Chandigarh Zirakpur Limited, a special purpose vehicle set up specifically for this project. 

The deal covers the construction of a six-lane, access-controlled road stretching 10.3 km, connecting the Ambala-Chandigarh section of NH-205A with the Zirakpur Bypass. The estimated project cost is Rs 603 crore, excluding GST.

In simple terms, Zirakpur sits right on the Punjab-Haryana border and is one of the busier transit points in the region. The new road is meant to ease the bottleneck between the main highway and the bypass.

The project will be built under the Hybrid Annuity Mode, which means Ceigall gets a portion of the project cost upfront from the NHAI during construction and the rest as fixed payments over the operations period. 

The construction window is 18 months, followed by a 15-year period during which the company manages and maintains the road.

Ceigall had already received the letter of acceptance for this project before today. The concession agreement is the formal next step, bringing construction closer to starting.

On the broader business front, the company’s management has guided for 15% revenue growth in FY27 and expects the debt-to-equity ratio to come down to 0.49x from 0.6x following a recent fundraise.

At 12:36 pm on NSE, Ceigall India shares were trading at Rs 366.25, down 0.04% on the day. The stock has gained around 35% so far this year.

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