IRB Infra gains after receipt of letter of award for a highway project

IRB Infrastructure Developers rose 2.42% to Rs 95.10 at 13:09 IST on BSE after the company said that NHAI has selected the company as the selected bidder for a highway project in Maharashtra.

The announcement was made during trading hours today, 26 December 2013.

Meanwhile, the S&P BSE Sensex was up 35.92 points or 0.17% at 21,068.63.

On BSE, so far 5.01 lakh shares were traded in the counter as against average daily volume of 6 lakh shares in the past one quarter.

The stock hit a high of Rs 95.65 and a low of Rs 92.10 so far during the day. The stock had hit a 52-week high of Rs 137.15 on 8 January 2013. The stock had hit a record low of Rs 51.90 on 2 August 2013.

The stock had outperformed the market over the past one month till 24 December 2013, advancing 5.81% compared with the Sensex's 4.03% rise. The scrip had also outperformed the market in past one quarter, jumping 16.87% as against Sensex's 5.58% rise.

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

IRB Infrastructure Developers (IRB) said that National Highways Authority of India (NHAI) by way of a Letter of Award (LoA) dated 24 December 2013 whereby NHAI has accepted the company's price bid and has declared IRB as the selected bidder for the project of four laning of Solapur to Yedeshi section of national highway (NH)-211 in Maharashtra under National Highways Development Project (NHDP) Phase IV on design, build, finance, operate and transfer (DBFOT) (Toll) basis.

IRB had on 17 December 2013 said that the project cost was about Rs 1500 crore with a concession period of 29 years. IRB has sought Rs 189 crore as viability gap funding from NHAI.

Also, IRB today, 26 December 2013 said that IRB Westcoast Tollway, a wholly-owned subsidiary of the company, has achieved financial closure in terms of the concession agreement executed with NHAI, by tying up of project finance of Rs 1406 crore.

The total cost of this project is Rs 2639 crore, out of which viability gap funding from NHAI of Rs 536 crore, equity contribution by the company will be about Rs 697 crore and remaining will be funded through project finance of Rs 1406 crore, IRB said. The average cost of this project finance is approximately 11.75% per annum, it added.

IRB said that a consortium of lenders comprising of IDBI Bank-Lead Institution, Allahabad Bank, Bank of Baroda, Bank of India, Canara Bank and Union Bank of India have financed this project.

IRB Infrastructure Developers' net profit declined 11.7% to Rs 106.81 crore on 11.1% growth in net sales to Rs 939.13 crore in Q2 September 2013 over Q2 September 2012.

IRB Infrastructure Developers undertakes development of various infrastructure projects in the road sector through several special purpose vehicles.

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