Select construction & engineering shares in focus; J Kumar Infra, HCC up over 5%

JP Associates, HCC, J Kumar Infra, Simplex Infrastructure, Sunil Hitech, IVRCL and MBL Infra up over 5% each.

Shares of construction & engineering companies were trading higher in otherwise weak market on back of heavy volumes.

Jaiprakash Associates, Hindustan Construction Company (HCC), J Kumar Infraprojects, Simplex Infrastructure, Sunil Hitech Engineers, IVRCL and MBL Infrastructures have rallied more than 5% each, as compared to 0.49% decline in the S&P BSE Sensex at 02:05 PM.

Jaiprakash Associates zoomed 38% to Rs 12.50 on the BSE in intra-day trade after the company said it sold its cement plants spread across five states to UltraTech Cement for enterprise value of Rs 16,189 crore.

Further, the company has informed that taking note of the decision of joint lenders forum of company’s lenders on the invocation of Strategic Debt Restructuring (SDR), subject to approval of lenders, the board has constituted a committee of directors to evaluate various options necessitating financial restructuring as may be applicable with evolving guidelines of RBI and Banks to deal with the debt management and take all actions / steps, as may be considered necessary, by the said Committee.

A combined 402 million equity shares representing 16.5% of total equity of Jaiprakash Associates changed hands on the counter on the NSE and BSE.

Hindustan Construction Company (HCC) rallied 10% to Rs 23 on the BSE after the company as a lead partner in the joint venture (JV) with MMS of Russia, has been awarded Rs 2,523 crore contract by the Mumbai Metro Rail Corporation Limited (MMRCL). This is part of the Line 3 of the Mumbai Metro from Colaba to SEEPZ.

“The contract is for construction of 4,072 meter corridor of the underground metro line including four underground stations and twin bored tunnels of total length of 3,115 m. The project is to be completed in 55 months,” HCC said in a press release.