IRB Infra gains after bagging Rs 2650 crore project from NHAI

IRB Infrastructure Developers rose 1.65% to Rs 246 at 13:25 IST on BSE after the company bagged Rs 2650 crore Agra-Etawah Bypass project from National Highway Authority of India.

The company made announcement before market hours today, 21 May 2015.

Meanwhile, the S&P BSE Sensex was down 55.47 points or 0.2% at 27,781.74.

On BSE, so far 1.35 lakh shares were traded in the counter as against average daily volume of 3.13 lakh shares in the past one quarter.

The stock hit a high of Rs 248.15 and a low of Rs 244.25 so far during the day. The stock had hit a 52-week high of Rs 289.40 on 19 November 2014. The stock had hit a 52-week low of Rs 167.45 on 20 May 2014.

The stock had outperformed the market over the past one month till 20 May 2015, gaining 0.1% compared with Sensex's 0.18% fall. The scrip had also outperformed the market in past one quarter, sliding 1.85% as against Sensex's 4.77% fall.

The mid-cap stock has equity capital of Rs 351.45 crore. Face value per share is Rs 10.

IRB Infrastructure Developers said that the company has emerged as a preferred bidder for the project of six laning of Agra-Etawah Bypass section of NH-2, from 199.660 kilometers to 323.525 kilometers in the State of Uttar Pradesh under NHDP Phase-V on build, operate and transfer (BOT) toll mode. The estimated cost of the project is approximately Rs 2650 crore. The concession period of the project is 24 years. The construction period is 910.days. The project will expand company's base in eighth state namely Uttar Pradesh and thereby it will aid the company's geographic diversification of projects.

The company will get tolling rights on Agra-Etawah Bypass section of NH-2 from the appointed date. The company has offered premium of Rs 81 crore to NHAI, which will increase by 5% year on year.

Subject to the award, IRB's construction order book will stand to increase to approximately Rs 10900 crore to be executed in the next four years. This will boost the company's construction orderbook visibility for next three to four years.

IRB Infrastructure Developers' consolidated net profit rose 22.2% to Rs 132.56 crore on 9.6% rise in total income to Rs 993.01 crore in Q3 December 2014 over Q3 December 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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