Nesco Limited updates on LOA from NHLML

National Highways Logistics Management Limited (NHLML) had granted letter of award for Developing, Operating and Maintaining of Wayside Amenities at 3 sites in South Zone on Bengaluru Chennai Expressway Corridor (Phase II) Section on Lease Basis. This has been intimated to the exchanges on 6 January 2025 ('Letter'). Upon joint inspection of the sites now and discussions with the vendors based on the scope of work, it is found that there are significant feasibility and viability challenges at 2 of the allotted sites and are hence now surrendered by the Company, which is accepted by NHLML.

Accordingly, the Broad consideration or size of the order (s) contracts (s) which was intimated in the said Letter stand revised as under:

- The total cost the Company has to incur for development of Wayside Amenities is estimated at ~ Rs. 75 crores for 1 site.

- The estimated annualised revenue from 1 site is ~ Rs. 115 crores from year 4 of operations.

- The annual lease rent is Rs. 5.53 crores for 1 site with fixed annual revision basis increase in WPI and CPI.

Rest of the information communicated vide the said Letter remains unchanged. There are no financial implications imposed by NHLML due to this surrender.

Shares of Nesco Limited was last trading in BSE at Rs. 1300.05 as compared to the previous close of Rs. 1356.40. The total number of shares traded during the day was 8716 in over 1048 trades.

The stock hit an intraday high of Rs. 1354.60 and intraday low of 1293.55. The net turnover during the day was Rs. 11457095.00.

Source : Equity Bulls

Keywords

Nesco INE317F01035 Updates LOA NHLML