Dilip Buildcon Ltd (DBL) saw its stock rise 4.40% to ₹410.10 at 11:27 AM, February 17, 2025, following a settlement with the National Highways Authority of India (NHAI). The company’s shares had been under pressure in the past month, down 3.26%, and have fallen 17.16% over the past year.
The dispute was related to an EPC contract for the six-laning of the Nidagatta-Mysore section of NH-275 in Karnataka, awarded under the Hybrid Annuity Model in 2018. DBL had claims against DBL Nidagatta – Mysore Highways Private Limited (DNMHPL), which were referred for conciliation.
The case was reviewed by the Conciliation Committee of Independent Experts (CCIE), which led to a settlement between DBL, DNMHPL, and NHAI.
As per the agreement, NHAI will disburse ₹176.90 crore, with ₹117.41 crore directly related to DBL’s claims. The amount is expected to be paid within 30 days.
The settlement covers multiple claims, including:
The settlement resolves a long-pending issue and provides DBL with additional funds. While the stock saw a short-term jump, it remains lower than its level a year ago. The broader impact on the company’s financials will depend on how it manages future projects and cash flow.
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Published on: Feb 17, 2025, 3:49 PM IST
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