Dilip Buildcon Ltd restrained by NHAI from participating in bids

Dilip Buildcon Ltd. through its SPV i.e. DBL Anandapuram Anakapalli Highways Ltd., (hereinafter retbrred to as "Concessionaire") was undenaking the development, maintenance, and management of National Highway No. 05 (New NH-16) Anandpuram - Pendurthi - Anakapalli including the section from km 681.000 to km 731.780 (approx. 50.780 km).

While the Concessionaire was carrying out the work at the said Project by following all the specifications and standards in accordance with the provisions of the Concession Agreement and other standard industry practices, on 06.07.2021 , at around 5:50 PM, two (02) Girders of span length of 4l m on LHS (G1 & G2 of span A1-A2) for construction of flyover at Ch. 730+819 located at the said Project toppled and fell on two vehicles plying underneath and causing casualties at the said site of the Project.

The Concessionaire on being informed of the said accident, at the very outset instructed its employees located at the site to safely rescue the passer-by's and fully cooperate with the investigating authorities. The Concessionaire has also duly compensated the families of the deceased persons and persons who have suffered injuries due to the said accidcnt.

Thereafter the Concessionaire duly informed the Authority of the accident at the said Project, and the Authority thereafter constituted an expert committee to investigate the incident and submit its report of the cause and to ascertain to reason of failure leasing to the said incident.

The report from the expert committee is still awaited which is anticipated to be prepared by the committee in approximately coming 2-3 weeks, however till then the Authority through its interim order bearing Ref. No. NHAI/Tech/AP/APA/COC /2021 (E-91822)1906 dated 12.07.2021, has temporarily restrained the Concessionaire and Dilip Buildcon Ltd. (as being Promoter of Concessionaire) and other promoter(s) of the Concessionaire from participating in any NHAI / Authority's bids directly or in association JV) with immediate effect until further order / decision on the findings of the investigation after following due procedure.

The Company as on 3lst March, 2021 has government orders / tenders of total value of Rs. 27,411.40 Crores on its books. The Company shall be able to successfully complete the works at the project where the incident has occurred and execute all other projects in the pipeline. Further, the Company shall endeavour to extend full cooperation to the investigating authorities / expert committee constituted by NHAI and is certain that it shall be able to put behind the unfortunate incident occurred at its project site at the earliest.

Shares of Dilip Buildcon Ltd was last trading in BSE at Rs.586 as compared to the previous close of Rs. 602.25. The total number of shares traded during the day was 115906 in over 1408 trades.

The stock hit an intraday high of Rs. 600 and intraday low of 582. The net turnover during the day was Rs. 68898482.

Source : Equity Bulls

Keywords