MEP Infra gains after winning toll collection rights in Uttar Pradesh

MEP Infrastructure Developers rose 2.63% to Rs 48.85 at 10:25 IST on BSE after the company said it was granted rights from the National Highways Authority of India to collect toll at Brijghat toll plaza in Uttar Pradesh.

The announcement was made before market hours today, 11 December 2015.

Meanwhile, the BSE Sensex was down 17.76 points, or 0.07%, to 25,234.56.

On BSE, so far 59,000 shares were traded in the counter, compared with an average volume of 5.22 lakh shares in the past one quarter.

The stock hit a high of Rs 49.65 and a low of Rs 48.20 so far during the day. The stock hit a record high of Rs 67 on 17 July 2015. The stock hit a record low of Rs 41.20 on 25 August 2015.

The stock had underperformed the market over the past one month till 10 December 2015, sliding 6.02% compared with 1.91% decline in the Sensex. The scrip had, however, outperformed the market in past one quarter, falling 0.10% as against Sensex's 1.44% decline.

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

MEP Infrastructure Developers (MEP) said it was awarded by the National Highways Authority of India (NHAI) the rights for collection of user fee through fee collecting agency on the basis of competitive bidding through (e-tender) for Brijghat toll plaza at 88.50 kilometre (km) for the section Hapur-Garmuketeswar section (58 km to 93 km) on National Highway (NH)-24 in Uttar Pradesh (UP). MEP received the Letter of Acceptance (LoA) on 10 December 2015 from NHAI.

The operations will commence within 12 days from the date receiving the LoA after complying with the statutory formalities. The contract is for one year. The contractual amount for the project is Rs 51.84 crore payable to NHAI on a weekly basis over a period of one year.

On a consolidated basis, MEP Infrastructure Developers reported net profit of Rs 5.30 crore on net sales of Rs 477.75 crore in Q2 September 2015.

MEP Infrastructure Developers is among the leading players in tolling operations in the road infrastructure sector. The company's focus is on pure toll collection projects as well as OMT (Operation, Maintenance and Toll) collection projects, which involve maintenance obligations in addition to toll collection on operational roads including highways constructed by third parties.

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