Dilip Buildcon shares rally 12% on bagging Rs 1,800 crore LPG pipeline project
Dilip Buildcon shares rallied after the company received an LOI from PNGRB to develop an LPG pipeline from Paradip to Raipur. The project gives the company an exclusive licence to develop, finance, construct and operate the pipeline, as well as levy and collect transportation tariffs up to the designated delivery point.
Dilip Buildcon shares surged by 11.88% at the opening of trading on Thursday, reaching a daily peak of Rs 439 on the NSE after securing a letter of intent to develop an LPG pipeline project. The project, valued at around Rs 1800 crore, involves constructing, operating, and maintaining an LPG pipeline from Paradip in Odisha to Raipur in Chhattisgarh.
The project authority is the Petroleum and Natural Gas Regulatory Board (PNGRB), which has granted Dilip Buildcon an exclusive license to develop, finance, construct, and operate the pipeline infrastructure. Dilip Buildcon will undertake the entire project through a Special Purpose Vehicle (SPV), holding 100% equity, with the engineering, procurement, and construction works to be awarded to DBL.
The pipeline is expected to enhance road safety by replacing road-based transportation and serve as a common carrier for eligible Oil Marketing Companies (OMCs). This project is anticipated to generate revenue through the applicable petroleum and petroleum products pipeline transportation tariffs. Over the past three years, Dilip Buildcon's stock has experienced a significant gain of 25.92%, while over the last five years, it has seen a decline of 17.98%.
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