Dilip Buildcon Shares Rise 9% on securing LoI for LPG pipeline project

Dilip Buildcon shares gained 9% in early trade on September 10 after the company emerged as the successful bidder for a Letter of Intent to develop an LPG pipeline from Paradip in Odisha to Raipur in Chhattisgarh.

The project will be authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB). It will have a construction period of three years, followed by an operating period of 25 years.

In short: Dilip Buildcon has secured an LoI for a long term LPG pipeline project that will involve the company in financing, construction, operation and maintenance of the infrastructure.

Dilip Buildcon share price today

At 9:17 AM, Dilip Buildcon was trading at ₹428.80, up ₹35.80 or 9.11% on the BSE. The stock had closed at ₹392.45 in the previous session, down 0.29%.

The stock has touched a 52 week high of ₹587.90 and a low of ₹381.75. It is currently 33.25% below its 52 week high and 2.8% above its 52 week low.

Stock metric	Value
Current price	₹428.80
Market cap	₹6,375 crore
52 week high	₹587.90
52 week low	₹381.75
Distance from 52 week high	33.25% below
Distance from 52 week low	2.8% above

What is the Dilip Buildcon LPG pipeline project?

Under the project, PNGRB will grant Dilip Buildcon an exclusive licence to develop the LPG pipeline infrastructure. The company will be responsible for financing, construction and operation of the pipeline and will be allowed to levy and collect transportation tariffs.

Dilip Buildcon will undertake the design, financing, development, construction, operation and maintenance of the project, subject to applicable approvals and regulatory requirements from PNGRB.

Dilip Buildcon LPG pipeline project timeline

The proposed Paradip to Raipur LPG pipeline will have a three year construction period, followed by an operating period of 25 years.

The pipeline is expected to transport LPG to bottling plants operated by various oil marketing companies. The project is also aimed at replacing road based transportation through LPG tankers and improving road safety.

Dilip Buildcon Q1 financial performance

Dilip Buildcon reported a 50.7% fall in Q1 profit to ₹113 crore, compared with ₹229 crore in the same period previously. Revenue declined 9.3% to ₹2,377.8 crore from ₹2,620.3 crore.

The latest project win comes as the company looks to add new infrastructure work while investors track its order pipeline and execution.

The next focus will be the approvals and subsequent development of the Paradip to Raipur LPG pipeline project.