IRB Infra slumps on withdrawal from MTHL project

Shares of IRB Infrastructure were down 21% at Rs 57.45 after the company decided to withdraw from the Rs 9,360 crore Mumbai Trans Harbour Link (MTHL) citing bad experience on some other infrastructure projects in the state.

In the letter Virendra Mhaiskar Chairman IRB Infrastructure said, "We deeply regret to inform you that we are unable to participate in the bidding process of the project and the reasons are beyond the boundaries of this project. Unfortunately the experience that we have had in one of the infrastructure projects in Maharashtra in the city of Kolhapur has shattered our confidence to invest in the urban infrastructure projects especially in the state of Maharashtra.

However, with IRB's decision to walk out of the project other four bidders remain in the fray.

The stock has hit an intra-day high of Rs 73 and a low of Rs 52.10 on the BSE.

Over 3.3 million shares were traded so far on both the stock exchanges.