Shares of Ashoka Buildcon Limited surged more than 4% after the company announced that it has received a Letter of Intent (LoI) for a key government project in Maharashtra. The order has been awarded to a consortium comprising Ashoka Buildcon and RailTel Corporation of India Limited.
The project has been awarded by the Inspector General of Registration & Controller of Stamps, Maharashtra State, Pune. It involves the selection of a Managed Service Provider for the modernization of offices under the Inspector General of Registration (IGR) and Controller of Stamps, Government of Maharashtra.
According to the company’s regulatory filing under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the scope of work includes end-to-end modernization, operation, and maintenance of IT systems, network infrastructure, cloud services, and application infrastructure. The entire assignment will be executed on a turnkey basis.
The contract is domestic in nature and will run for a period of five years, with execution scheduled until March 19, 2032. The modernization initiative is aimed at upgrading digital infrastructure across IGR offices in Maharashtra, strengthening document registration and related services through improved technology systems.
As per the LoI, the accepted rate stands at ₹24.75 per scanned page. A page refers to a single-side scanned page of a registered document. While the total contract value has not been explicitly mentioned in the LoI, the Request for Proposal (RFP) indicates that the average number of pages scanned annually over the last five years was around 9.18 crore pages. Based on this data, the estimated financial impact over the five-year contract period is approximately ₹1,136.18 crore. However, the company has clarified that actual revenues may vary depending on the number of pages processed during the tenure of the agreement.