Ashoka Buildcon Secures Rs 539.35 Crore Railway Electrification Contract from North Western Railway

Ashoka Buildcon Limited , a prominent infrastructure development company, has recently secured a significant railway electrification contract from the North Western Railway, Ajmer. The company received a Letter of Acceptance (LoA) for a project valued at Rs 539.35 crore, including GST, marking a substantial addition to its order book.

Project Details

The awarded contract involves a comprehensive upgrade of the existing electric traction system in several sections of the Ajmer Division of North Western Railway. Here are the key aspects of the project:

Project Component	Details
Scope of Work	Upgrading from 1x25kV to 2x25kV electric traction system
Additional Task	Modifying existing Overhead Equipment (OHE) for 160 kmph speed
Coverage Area	660.81 Route Kilometers (RKM) / 1200.85 Track Kilometers (TKM)
Specific Sections	AII-COR, COR-UDZ, MD-BWA & BWA-PNU Sections
Contract Duration	24 calendar months from LoA issuance

Contract Specifications

Ashoka Buildcon's responsibilities under this contract are extensive and technical in nature:

Design of the upgraded electric traction system
Supply of necessary equipment and materials
Erection of the new 2x25kV system
Testing of the installed infrastructure
Commissioning of the upgraded traction system

This project aligns with the Indian Railways' ongoing efforts to modernize and enhance the efficiency of its electrification infrastructure, potentially leading to improved train speeds and overall network performance.

Company Disclosure

In compliance with regulatory requirements, Ashoka Buildcon Limited disclosed this development to the stock exchanges. The company filed the information under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency for its shareholders and the market at large.

Implications for Ashoka Buildcon

This contract represents a significant opportunity for Ashoka Buildcon to strengthen its position in the railway infrastructure sector. The project's substantial value and technical complexity showcase the company's capabilities in handling large-scale railway electrification works.

As the Indian government continues to focus on upgrading railway infrastructure, companies like Ashoka Buildcon may benefit from the increasing number of such projects. This contract could potentially lead to improved revenue streams and enhanced expertise in railway electrification for the company.

Investors and market watchers will likely monitor Ashoka Buildcon's execution of this project, as timely and efficient completion could position the company favorably for future railway infrastructure contracts.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.89%	-3.28%	+6.35%	+11.99%	-16.90%	+213.26%

Ashoka Buildcon Limited's wholly-owned subsidiary, Ashoka Infraways Limited (AIWL), has been selected as the successful resolution applicant for Shree Sainath Land & Development India Private Limited (SSLD), a real estate developer currently undergoing the Corporate Insolvency Resolution Process (CIRP).

Key Acquisition Details

The Committee of Creditors (CoC) of SSLD has approved AIWL's resolution plan, which includes the following terms:

Aspect	Details
Total Payment	₹80.52 crore to all creditors
Upfront Payment	₹21.02 crore to LIC Housing Finance Limited
Payment Schedule	Balance amount over 4 years
Ownership	AIWL to acquire 100% ownership of SSLD
Homebuyers	To receive flats/properties as per agreed terms

Regulatory Approvals and Next Steps

The acquisition is subject to several regulatory steps:

The Resolution Professional has issued a Letter of Intent to AIWL.
The transaction requires approval from the National Company Law Tribunal (NCLT), Mumbai Bench.
Additional approvals may be needed from other regulatory authorities, courts, or tribunals under applicable laws.

Impact on Ashoka Buildcon and AIWL

This acquisition aligns with AIWL's core business as a real estate developer. Upon implementation of the resolution plan, AIWL will gain full ownership of SSLD and its ongoing real estate project.

Financial Implications

While detailed financials for SSLD are not available due to the CIRP process, the most recent data from FY 2022-23 shows:

Net worth: ₹2.55 crore
Revenue from operations: ₹21.61 lakh
Project Work in Progress: ₹160.68 crore
Creditors: ₹163.55 crore

Disclosure and Compliance

Ashoka Buildcon Limited has made this disclosure in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. The company has also noted that the trading window for Designated Persons and their immediate relatives is closed from October 1, 2025, until 48 hours after the declaration of financial results for the quarter ended September 30, 2025.

This strategic move by Ashoka Infraways to acquire Shree Sainath Land & Development showcases the company's commitment to expanding its real estate portfolio. The acquisition, once approved by the NCLT, may potentially strengthen AIWL's position in the real estate sector and provide a resolution for SSLD's ongoing project and its stakeholders.