Shares of Ashoka Buildcon Ltd surged 3% to touch a day’s high of Rs 151 on 23rd January. This happened after the company announced on Thursday (22nd January) that it had received a Letter of Acceptance (LOA) from the Public Works Department, Work Division-I, Daman. The LOA was for the construction of a signature bridge.

The project will connect the Jampore Sea Front road near the Lighthouse to the Devka Sea Front road at Parkota Sheri in Daman. The accepted bid value stands at Rs 307.71 crore, excluding GST. The contract was awarded by a domestic entity. It follows a Design, Build, and Operate model. Moreover, the company is required to complete the design and construction work within 30 months.

Ashoka Buildcon clarified that the project does not involve any related-party transaction. In addition, neither the promoter nor the promoter group has any interest in the entity awarding the contract.

Separately, in December last year, Ashoka Buildcon Ltd secured an additional work order worth Rs 447.21 crore, including taxes, from the Brihanmumbai Municipal Corporation (BMC) for its ongoing flyover project on the Sion–Panvel Highway. The additional scope includes the construction of Flyover Arm-1 and Arm-2 at the T-junction near Maharashtra Nagar in the M/E Ward. This contract was also awarded by a domestic entity on a percentage-rate basis.

At 11:15 AM, shares of Ashoka Buildcon were trading 1.70% higher at Rs 147 on NSE.

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