Share price of a construction engineering company moved up by nearly 4.4 percent to Rs. 90.8 in the morning trading session of January 23, after the company announced a receipt of a Letter of Award (LoA).
With a market cap of Rs. 1,895 crore, shares of Vascon Engineers Ltd opened at Rs. 88.80 on Tuesday from its previous close of Rs. 88.10. The company has delivered a positive return of nearly 103.02 percent returns in the last six months and more than 148.7 percent in the last one year. So far, it has given negative returns of around 16.7 percent in 2024.
According to the recent filings in the stock exchanges, Vascon Engineers Limited has received a Letter of Award from Capgemini Technology Services India Ltd worth Rs. 416 crores (excluding GST). The work has to be completed within 30 months from the date of the Award.
Vascon received LoA from Capgemini for Construction contracting works for the Chennai Sipcot Base Built Construction Project, Chennai, Tamil Nadu, and the work has been awarded on an “EPC Basis”.
None of the Promoter or Promoter Group has any interest in the aforesaid work and it doesn’t fall under the ambit of related party transactions.
Earlier in November 2023, the Board of Directors (BoD) had approved the raising of funds for an aggregate amount not exceeding Rs. 125 crores by way of qualified institutions placement (QIP) or other permissible mode in accordance with the applicable laws.
In terms of financials, the company’s revenue from operations grew by 55 percent from Rs. 657 crore in FY21-22 to Rs. 1,019 crore in FY22-23, accompanied by a significant increase in net profit from Rs. 36 crore in FY21-22 to Rs. 99 crore in FY22-23.
As of December 2023, FIIs hold 0.11 percent of the shares, whereas DIIs hold 0.14 percent of the shares in the company, aggregating to 0.25 percent of the institutional holdings. The Promoters’ holdings have decreased from 32.20 percent in the September 2023 quarter to 31.62 percent in the December 2023 quarter.
Incorporated in 1986, Vascon Engineers Ltd. is a construction engineering company, operating in the Real Estate sector. It is present in multiple sectors including residential, industrial, IT parks, malls and multiplexes, hospitality and community welfare centres, schools and hospitals.
With over three decades of experience and a presence in over 30 countries across India, the company has delivered more than 200 projects in the commercial, industrial and residential space with a construction area of over 50 million square feet.
Written by Shivani Singh
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