IRB Infra Developers edges higher on winning MSRDC's project

IRB Infrastructure Developers rose 1.38% to Rs 234.80 at 14:45 IST on BSE after the company's wholly owned subsidiary Mhaiskar Infrastructure executed concession agreement with The Maharashtra State Road Development Corporation.

The announcement was made after market hours on Monday, 13 October 2014.

Meanwhile, the BSE Sensex was up 23.73 points, or 0.09%, to 26,407.80.

On BSE, so far 2.98 lakh shares were traded in the counter, compared with an average volume of 7.55 lakh shares in the past one quarter.

The stock hit a high of Rs 236.40 a low of Rs 229.90 so far during the day. The stock hit a 52-week high of Rs 275.50 on 8 July 2014. The stock hit a 52-week low of Rs 68.05 on 30 January 2014.

The stock had underperformed the market over the past one month till 13 October 2014, falling 11.75% compared with Sensex's 2.5% decline. The scrip had also underperformed the market in past one quarter, declining 4.69% as against Sensex's 5.43% rise.

The mid-cap company has an equity capital of Rs 332.36 crore. Face value per share is Rs 10.

IRB Infrastructure Developers said that the company's wholly owned subsidiary Mhaiskar Infrastructure has now executed concession agreement with The Maharashtra State Road Development Corporation (MSRDC) for the project of operation & maintenance of Yashwantrao Chavan Expressway and Mumbai Pune section of NH-4 along with execution of additional works on Mumbai Pune section of NH-4, on Design, Build, Finance, Operate, Transfer (DBFOT) basis with toll rights in the state of Maharashtra.

The estimated cost of the project is approximately Rs 1687 crore, including Rs 1000 crore as upfront premium payable to MSRDC in 4 annual installments as prescribed in the bid, commencing from 31 March 2015, IRB Infrastructure Developers said. The concession period for the project is 8 years 8 months and 2 days commencing from 31 March 2015. The construction works and payment of upfront premium installments to MSRDC have to be completed as prescribed in the bid till 10 August 2019. The toll collection for the project will commence from 10 August 2019, resulting into an effective tolling period of 4 years 3 months 22 days only.

IRB Infrastructure Developers' consolidated net profit rose 12.3% to Rs 150.62 crore on 2.4% decline in total income to Rs 1036.71 crore in Q1 June 2014 over Q1 June 2013.

IRB Infrastructure Developers was incorporated to fund the capital requirements of the IRB Group initiatives in the infrastructure sector. The company undertakes development of various infrastructure projects in the road sector through several Special Purpose Vehicles.

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