Dilip Buildcon shares fell more than 3 per cent in intraday trading on October 29 after the company secured a Rs. 6.88 bn order from the National Highways Authority of India (NHAI). The stock initially gained more than 2 per cent following the announcement but later reversed those gains.

The company received a Letter of Award from NHAI for the project under the Hybrid Annuity Model. The order involves constructing a 4-lane elevated corridor, including approaches, between Old Pune Naka and Boramani Naka on NH-65 in Solapur City, Maharashtra.

The project is scheduled for completion within 24 months. Dilip Buildcon will subsequently operate and maintain the corridor for 15 years from the Commercial Operation Date. Under the Hybrid Annuity Model, the government pays 40 per cent of a road project’s cost during construction, while the private developer funds the remaining 60 per cent and receives annuity payments later.

The order is Dilip Buildcon’s second major win in October. On October 7, the company received approval from the Petroleum and Natural Gas Regulatory Board to lay, build, operate and expand a Rs. 18 bn liquefied petroleum gas pipeline connecting Paradip in Odisha with Raipur in Chhattisgarh.

At 11:50 am, Dilip Buildcon shares were trading 3.2 per cent lower at Rs. 373.50. The stock remained about 6 per cent above its 52-week low of Rs. 352.80, recorded on October 23. It has declined about 21 per cent so far this year and 22.5 per cent over the past 12 months.