Penny Stock Below Rs 120: This Small-Cap Infra Company’s Subsidiary Emerges as L1 Bidder for Rs 453 Crore Coal Mining Project; Share Price Hits 5% Upper Circuit

Ganesh Infraworld has announced that its subsidiary Tykoon Mines GK Ltd, formerly known as Kandoi Transport Ltd, has emerged as the Lowest Bidder (L1) for work relating to the SDOC Mine of Dhori Area of Central Coalfields Ltd (CCL), located primarily in Bokaro district, Jharkhand. The bid value is approximately Rs 453.16 crore, with the proposed execution period of around five years. Further, the Nifty India Infrastructure Index was trading at 9,395.75, down 20.75 points or 0.22 per cent, while Ganesh Infraworld shares were trading at Rs 117.30, up 4.97 per cent and locked in the 5 per cent Upper Circuit.

Ganesh Infraworld Secures Rs 453.16 Crore Mining Project

The project relates to work at the SDOC Mine of Dhori Area of CCL. If the L1 status is successfully converted into a formal contract, the project is expected to be executed over approximately five years. The company stated that, based on its current understanding of the scope and commercial terms, the project is expected to have a margin profile broadly in line with its existing projects of a similar nature, subject to the final contractual terms and actual execution.

However, Ganesh Infraworld clarified that emergence as the L1 bidder does not constitute the award of the contract. The final award remains subject to completion of CCL's applicable procurement process, including negotiations, approvals, price confirmation or matching, issuance of the Letter of Acceptance or Work Order and fulfilment of other prescribed conditions.

Final Contract Award Awaited

The company will make further disclosures to the stock exchanges upon any material development, including receipt of the LOA, Work Order or formal award of the contract, as applicable.

The latest development adds a sizeable potential project to the company's business pipeline, although the Rs 453.16 crore value should currently be treated as a bid value and not as confirmed order-book revenue, since the contract has not yet been formally awarded.
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Share Price Performance

On Tuesday, Indian equity benchmark indices traded lower, with the Nifty 50 declining 0.36 per cent to 24,201.00. Amid the market movement, Ganesh Infraworld shares rose 4.97 per cent to Rs 117.30 and were locked in the 5 per cent upper circuit.

The stock's movement came as the company disclosed that its subsidiary had emerged as the L1 bidder for the approximately Rs 453.16 crore CCL mining project.

About Ganesh Infraworld

Ganesh Infraworld Ltd, formerly known as Ganesh Infraworld Pvt. Ltd. and Ganesh International, has disclosed the latest development through its subsidiary Tykoon Mines GK Limited. The subsidiary's L1 bid relates to the execution of work at the SDOC Mine of Dhori Area of Central Coalfields Limited in Jharkhand.

The emergence of Tykoon Mines GK Limited as L1 for the Rs 453.16 crore project, along with the potential five-year execution period, remains a key development to track. The next important trigger will be the formal award, LOA or Work Order from CCL.

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Disclaimer: The article is for informational purposes only and not investment advice.