Vascon Engineers shares jumped 11% to a day high of Rs 33.74 on 16 October after it won a Rs 198 crore construction order from SBI in Pune.

Vascon Engineers Limited told exchanges early on Friday that State Bank of India has handed it a letter of acceptance for the work. A letter of acceptance is the client’s formal go-ahead.

The Rs 198 crore job covers the State Bank Institute of Learning and Development, residential flats and other commercial buildings at Hinjewadi in Pune.

Vascon will carry it out on an engineering, procurement and construction, or EPC, basis.

That means the company handles the planning, the buying of materials and the building under one contract. The company has 24 months to finish the project.

SBI’s Premises and Estate Department for the Maharashtra Circle in Pune awarded the contract. It is not a related-party transaction.

Orders like this give a construction company work to bill over the next two years. A bigger order came last month.

On 25 September, the firm received a Rs 660.79 crore work order, including taxes, from Qualcomm India for an office building in Bengaluru, due within 30 months of site handover.

The June quarter was softer, though. Revenue fell 31.3% from a year earlier to Rs 151.94 crore.

It is down 51.91% over 12 months and 29.34% since January, and it sits well below its 52-week high of Rs 70.20 set on 3 November last year. The 52-week low is Rs 26.75, hit on 30 March.

At 10:46 am, Vascon Engineers shares are trading at Rs 32.03 on NSE, up Rs 1.87 or 6.20% from Thursday’s close of Rs 30.16.

The stock opened at Rs 31 and has not traded below that level today. Its market value stands at about Rs 742 crore.

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