Ashoka Buildcon Limited hit a day high of Rs 140 on the BSE on Monday, 15 June, surging as much as 13% after the company secured a Letter of Acceptance for a Gems & Jewellery Park project in Raipur, Chhattisgarh under the Public-Private Partnership model.

The project has been awarded by the Chhattisgarh State Industrial Development Corporation Limited, a state-owned industrial body. 

Ashoka Buildcon will develop it through a joint venture where it holds a 51% stake as the lead partner. The JV will develop 38,922 square metres of land in Raipur into a dedicated park for the gems and jewellery industry. In return, the consortium will pay a premium of Rs 112.40 crore to the awarding authority. 

An annual lease rent equal to 2% of that premium will also be payable, with a 10% increase kicking in every four years. The lease runs for 30 years and can be extended up to 90 years. Construction must be wrapped up within five years.

On the related-party front, the company confirmed that CSIDC has no connection to Ashoka Buildcon’s promoters or group companies. This deal does not qualify as a related-party transaction.

At 11:37 am, shares of Ashoka Buildcon were trading at Rs 139.40 on the BSE, up 13.06% from the previous close of Rs 123.30.

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