MEP Infrastructure gains after winning toll collection rights from NHAI

MEP Infrastructure Developers gained 2.18% to Rs 42.15 at 11:30 IST on BSE after the company said that it won user fee collection rights at Paduna toll plaza at National Highway number 8 in Rajasthan.

The announcement was made after market hours yesterday, 3 May 2016.

Meanwhile, the BSE Sensex was down 102.17 points, or 0.4%, to 25,127.53.

On BSE, so far 32,769 shares were traded in the counter, compared with an average volume of 79,316 shares in the past one quarter. The stock hit a high of Rs 43.65 and a low of Rs 41.65 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 34.20 on 12 February 2016. The stock had outperformed the market over the past one month till 3 May 2016, rising 6.18% compared with the Sensex's 0.16% fall. The scrip had, however, underperformed the market in past one quarter, dropping 2.02% as against Sensex's 4.15% gains.

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

MEP Infrastructure Developers said that it has received the letter of acceptance (LOA) dated yesterday, 3 May 2016 from National Highways Authority of India (NHAI) informing that it has been engaged as the contractor for the project of collection of user fee through fee collection agency on the basis of competitive bidding for Paduna toll plaza at Udaipur- Kherwada section of NH No. 8 in Rajasthan. The period of the contract is one year. The operations will commence within 2 days after complying the statutory formalities namely, submission of performance security, signing of contract as per the LOA. The contractual amount for the project is Rs 128.07 crore payable to NHAI on a weekly basis over a period of one year.

On a consolidated basis, MEP Infrastructure Developers reported net profit Rs 5.28 crore in Q3 December 2015 as against net loss of Rs 35 in Q3 December 2014. Net sales declined 6% to Rs 497.28 crore in Q3 December 2015 over Q3 December 2014.

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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