NCC up almost 6%

NCC is doing very well today morning, currently up 6% at Rs.26.80, with an intra day high at Rs.27.25. Market cap stands at Rs.687 crore.

The stock is buzzing today on unconfirmed news that a unit of Sembcorp, which is backed by Singapore's sovereign investor Temasek Holdings, is expected to buy a majority stake in NCC Power Projects for $250 million or about Rs 1,500 crore. The deal is expected to be signed in a month’s time.

NCC Power Projects is a JV between NCC and Gayatri Projects and it is developing a 1,320MW coal-based thermal power project in Andhra's Nellore District. The project is expected to go on stream by March 2015. The talk is on for buying NCC’s 55% stake. Gayatri Projects may either choose to retain its 45% stake or sell a minority stake to Sembcorp.