Ashoka Buildcon Limited (ABL), a prominent infrastructure development company, has announced a significant win in its order book. The company has received a Letter of Acceptance (LOA) from Maharashtra State Electricity Transmission Co. Limited (MSETCL) for a major power infrastructure project valued at ₹3.12 billion (₹311.92 crore), inclusive of GST.

Project Details

The project awarded to Ashoka Buildcon involves the establishment of a 400/220 KV substation at Nandgaon Peth, District Amravati, along with associated transmission lines under the Amravati Zone of MSETCL. This turnkey works contract encompasses supply, erection, testing, commissioning (ETC), and civil works related to the substation.

Scope and Timeline

As per the LODR (Listing Obligations and Disclosure Requirements) filing by the company, the project has been classified as a domestic order. The scope of work includes:

• Supply of necessary equipment and materials
• Erection, Testing, and Commissioning (ETC) of the substation
• Civil construction works for the 400/220 KV substation

Ashoka Buildcon is expected to complete the project within 18 calendar months, excluding the monsoon period, highlighting the company's commitment to timely delivery of critical infrastructure.

Strategic Importance

This contract win underscores Ashoka Buildcon's strong position in the power transmission and distribution sector. The project aligns with Maharashtra's efforts to enhance its power infrastructure, potentially improving electricity transmission capacity and reliability in the Amravati region.

Financial Impact

The announcement of this substantial project is likely to be viewed positively by investors, as it adds to Ashoka Buildcon's order book and demonstrates the company's continued ability to secure large-scale infrastructure projects. The contract's value of ₹3.12 billion represents a significant boost to the company's revenue pipeline.

Conclusion

Ashoka Buildcon's success in winning this MSETCL project reaffirms its expertise in executing complex power infrastructure projects and its strong relationship with state utilities. As the company moves forward with this new venture, stakeholders will be keen to observe its execution capabilities and the potential impact on its financial performance in the coming quarters.

Ashoka Buildcon Limited , a prominent infrastructure development company, has announced the issuance of commercial papers (CPs) worth ₹50 crore on February 27, 2025. This move highlights the company's strategy to manage its short-term financial needs efficiently.

Key Details of the Commercial Paper Issuance

Terms and Conditions

The commercial papers are unsecured instruments, with the interest to be paid upfront. The principal amount is scheduled for repayment on the maturity date, May 26, 2025. This issuance is part of a larger approval by the company's board to issue commercial papers up to ₹200 crore outstanding at any point in time, in one or more tranches, as decided on May 22, 2024.

Significance of the Move

Commercial papers are short-term, unsecured debt instruments typically used by corporations to finance short-term liabilities. By issuing these papers, Ashoka Buildcon demonstrates its ability to access short-term funding at competitive rates, which can be crucial for managing working capital and operational expenses in the infrastructure sector.

Regulatory Compliance

In line with regulatory requirements, Ashoka Buildcon has duly informed the stock exchanges about this issuance, adhering to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency ensures that shareholders and potential investors are kept informed about the company's financial activities.

About Ashoka Buildcon Limited

Ashoka Buildcon Limited is a well-established infrastructure development company headquartered in Nashik, Maharashtra. The company is known for its involvement in various infrastructure projects across India, including road construction, power transmission, and railways.

This latest financial move by Ashoka Buildcon reflects the company's proactive approach to financial management and its continued focus on maintaining liquidity to support its ongoing operations and projects in the infrastructure sector.