NBCC Surges 15% After Cabinet Approves Redevelopment Projects

Shares of state-run construction company National Buildings Construction Corporation Limited (NBCC) jumped as much as 14.32 per cent to hit intraday high of Rs 222.70 after the Union Cabinet approved redevelopment of housing colonies in Delhi.

The Union Cabinet on Tuesday approved the redevelopment of three government residential colonies in New Delhi - Sarojini Nagar, Netaji Nagar and Nauroji Nagar - through NBCC. 

Central Public Works Department will redevelop the other four residential colonies in New Delhi. 

"There will be a total expenditure of Rs 32,835 crore which we are investing in dwelling units. After reconstruction, renovation and fresh construction, they could be increased from the present 12,970 to 25,667 dwelling units. This will help government employees who have to wait for long years to get government accommodation," Union Minister Ravi Shankar Prasad told a press conference.

NBCC shares were in high demand today. As many as 7 lakh shares changed hands on the BSE compared to an average of 1 lakh shares traded daily in the past two weeks.

NBCC reported a 6 per cent increase in its consolidated net profit at Rs 141.48 crore for the quarter ended March 31.

NBCC ended 10.65 per cent higher at Rs 215.55.