Stock news: The company's shares have gained 9.67% in a month. Now, its subsidiary has also secured a new project worth ₹1,199.30 crore from NHAI. Read on for complete details.
Seagull India Limited, a leading infrastructure sector company, has achieved another major success. Its subsidiary, Seagull Northern Ayodhya Bypass Private Limited, has been awarded a road project worth ₹1,199.30 crore by the National Highways Authority of India (NHAI). This project involves the construction of a 35.40-kilometer-long four and six-lane road in Uttar Pradesh, which will form part of the bypass in the northern part of Ayodhya.
NHAI has set the 'Date of Appointment' for the project as July 9.
In information provided to the stock exchange, the company stated that NHAI has fixed July 9, 2025, as the 'Date of Appointment' for this project. This means that work on the project will officially commence from this date. The project will be implemented under the Hybrid Annuity Mode (HAM) under NHDP (National Highway Development Program) Phase-VII.
Significant Contract Received in March Too
Earlier in March 2025, Seagull India received a significant project. The company informed that it had received a Letter of Award from NHAI for the construction of the Greenfield Southern Ludhiana Bypass. This project is part of the Ludhiana-Ajmer economic corridor in Punjab.
Ludhiana Project Also Involves a High Cost
The Ludhiana bypass project will span a total length of 25.24 kilometers. Its construction will be carried out from Rajgarh village to Ballowal village, extending from NH-44 to the Delhi-Katra Expressway (NE-5). The estimated cost of this project was ₹864.97 crore, while the total bid cost, according to the Letter of Award, was stated as ₹1,063.79 crore. The company secured this contract by bidding ₹923 crore and aimed to complete it within 24 months.
Impact on the Stock Market, a 9.67 Percent Rise in a Month
The impact of Seagull India's continuous receipt of large projects is clearly visible on its shares. On Tuesday, the company's shares rose by 7.02 percent on the BSE and closed at ₹271.45. The share also closed with a gain of 7.20 percent on the NSE.
In the last 5 days, the company's shares have increased by 7.47 percent, while in the last 1 month, they have climbed 9.67 percent. This increase has come at a time when competition in the infrastructure sector is constantly intensifying, and companies have to adopt b strategies in bidding for large projects.
Despite a Decline in 6 Months, Investor Confidence Remains Intact
However, if we look at the figures for the last 6 months, the shares of Seagull India have declined by about 20.98 percent during this period. Despite this, investor confidence remains intact due to the company's continuous receipt of government contracts and projects.
Experts believe that if the company completes these projects on time and with quality, it can strengthen both its brand value and order book in the future.
Benefit from Contracts Received in Hybrid Annuity Mode
The projects that Seagull India is receiving are under the Hybrid Annuity Mode. In this model, the risks are shared between the government and private companies. In this, the company receives 40 percent of the amount from the government during construction, while the company invests the remaining amount and recovers it.
In this model, companies have to take some financial risks, but it is considered beneficial for large and long-term projects. By adopting this model, Seagull India has further strengthened its presence in national highway construction.
Projects Strengthening the Company's Order Book
Seagull India's order book has become even ber after these new projects. The company is continuously handling road projects in various parts of northern India, including highways, bypasses, and greenfield corridors.
The company's involvement in religious and industrial areas like Ayodhya and Ludhiana reflects its experience and technical skills. According to experts, this can help the company in securing more projects in the future.
