NBCC India share price jumps over 3%; PSU stock up 10% in a month; what’s driving the rally?

PSU company NBCC share price jumped over 3.32 per cent on Thursday, March 27, after the company announced that it has signed an MoU with Mahatma Phule Renewable Energy and Infrastructure Technology (MAHAPREIT) to jointly work on infrastructure projects worth ₹25,000 crore in Maharashtra.

At 10 am, the NBCC stock was trading at ₹84.50 apiece on National Stock Exchange (NSE). It is interesting to note that the PSU stock has gained nearly 10 per cent in a month despite volatile market.

NBCC - MAHAPREIT MOU details

In a statement on Wednesday, NBCC announced that it has entered into a strategic Memorandum of Understanding (MoU) with Mahatma Phule Renewable Energy and Infrastructure Technology Ltd (MAHAPREIT).

The partnership aims to collaborate on various consultancy, fee-based, EPC, and redevelopment projects, covering all stages from concept to commissioning.

NBCC also highlighted that this marks its first foray into redevelopment in Maharashtra, following its success in reshaping Delhi’s landscape through its distinctive redevelopment model.

As part of this partnership, NBCC and MAHAPREIT will work together on major infrastructure projects in Maharashtra. Their collaboration will include cluster development projects in Thane Municipal Corporation, data centers, renewable energy initiatives, slum rehabilitation projects in the Mumbai Metropolitan Region (MMR), and various residential developments under the Pradhan Mantri Awas Yojana (PMAY).

“These projects, with an estimated value of ₹25,000 crore, will be executed in a phased manner over the next three to five years, contributing to sustainable urban development and affordable housing in line with the Government of India’s vision,” the PSU company said in an exchange filing.

The MoU seeks to leverage each party’s strengths and complement their capabilities, with the objective of enhancing long-term client acquisition and service delivery capabilities.

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