MEP Infra Developers gains after winning road project from NHAI

MEP Infrastructure Developers jumped 5.91% to Rs 38.50 at 14:20 IST on BSE after the company announced that its joint venture company received the letter of award from NHAI for the road project.

The announcement was made during market hours today, 27 June 2016.

Meanwhile, the BSE Sensex was down 63.67 points, or 0.3%, to 26,318.20.

High volumes were witnessed on the counter. On BSE, so far 1.87 lakh shares were traded in the counter, compared with an average volume of 92,148 shares in the past one quarter. The stock hit a high of Rs 39.25 and a low of Rs 36.20 so far during the day. The stock hit a record high of Rs 67 on 17 July 2015. The stock hit a 52-week low of Rs 34.20 on 12 February 2016. The stock had underperformed the market over the past one month till 24 June 2016, falling 12.62% compared with 4.32% rise in the Sensex. The scrip had also underperformed the market in past one quarter, dropping 6.31% as against Sensex's 4.18% rise.

The small-cap company has an equity capital of Rs 162.57 crore. Face value per share is Rs 10.

MEP Infrastructure Developers announced that MEP Infrastructure Developers-Sanjose India Infrastructure & Construction Pvt. Ltd joint venture has received today, 27 June 2016 the letter of award (LOA) dated 25 June 2016 from National Highways Authority of India (NHAI) for the road project.

The LOA was received for the project of four laning Mahuva to Kagavadar of NH-8E in the State of Gujarat on hybrid annuity mode under NHDP Phase IV. The construction period of the project is 2.5 years from the appointed date. The concession period for the project is 15 years excluding construction period of 2.5 years. The bid project cost of the project is Rs 604.68 crore and operation & maintenance (O&M) bid is Rs 8.46 crore for the first year. The company will receive bi-annual annuity from NHAI post commercial operation date (COD).

Further, MEP Infrastructure Developers-Sanjose India Infrastructure & Construction Pvt. Ltd.- joint venture, hybrid annuity order book stands at Rs 3836.99 crore to be executed over the next 3 years from the appointed date.

On a consolidated basis, net profit of MEP Infrastructure Developers declined 9.7% to Rs 10.06 crore on 2.1% rise in net sales to Rs 516.26 crore in Q4 March 2016 over Q4 March 2015.

MEP Infrastructure Developers is among the leading players in tolling operations in the road infrastructure sector.

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