IRB Infra gains on winning highway project from NHAI

Thus far in September 2016, the stock has outperformed the market by surging 17% as compared to 0.33% decline in the S&P BSE Sensex

IRB Infrastructure was trading higher by 3% to Rs 265 on the BSE after the company announced that it has received letter of award from the National Highways Authority of India (NHAI) for Rs 2100 crore highway project in Rajasthan and Gujarat.

“The company has received letter of award from NHAI for the project of six laning from Udaipur to Rajasthan/Gujarat border i.e from km 287.4 to 401.2 section of NH 8 in the states of Rajasthan and Gujarat," IRB Infrastructure said in a filing to the BSE.

The project will be on design, build, finance, operate and transfer (DBFOT) mode under National Highways Development Project Phase V.  The concession period of the project is 21 years including construction period of 910 days, it added.

The company engaged in roads & highways business on September 20, announced that it has emerged as a preferred bidder for the project of six laning from Kishangarh – Udaipur – Ahmedabad Section of around 125 Kms in the state of Rajasthan.

Subject to award, IRB’s construction order book will stand to increase to approximately Rs 11,300 crore, to be executed in the next four years, it added.

Thus far in September 2016, the stock has outperformed the market by surging 17% as compared to 0.33% decline in the S&P BSE Sensex.

At 09:28 am, the stock was up 2% at Rs 262 on the BSE. A combined 1.24 million shares changed hands on the counter on the BSE and NSE so far.