MEP Infrastructure jumps after winning toll collection rights in Uttar Pradesh

MEP Infrastructure Developers rose 4.19% to Rs 57.15 at 15:29 IST on BSE after the company said it won rights from the National Highways Authority of India to collect toll at Semri toll plaza in Uttar Pradesh.

The announcement was made during trading hours today, 16 October 2015.

Meanwhile, the BSE Sensex was up 201.75 points, or 0.75%, to 27,211.89.

On BSE, so far 8.20 lakh shares were traded in the counter, compared with an average volume of 5.32 lakh shares in the past one quarter.

The stock hit a high of Rs 58.50 and a low of Rs 53.65 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 41.20 on 25 August 2015.

Shares of MEP Infrastructure Developers (MEP) were listed on stock exchanges on 6 May 2015. The stock debuted at Rs 63 on BSE, at par with its initial public offer (IPO) price of Rs 63. On that day, it settled at Rs 60.95 on BSE, a discount of 3.25% over the IPO price.

The stock had outperformed the market over the past one month till 15 October 2015, rising 16.70% compared with 5.07% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, sliding 7.03% as against Sensex's 4.21% decline.

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

MEP received the letter of acceptance (LOA) from National Highways Authority of India (NHAI) today, 16 October 2015. As per the contract, MEP will begin the operations within 12 days from the date of accepting LOA after complying the statutory formalities. The period of the contract is one year. The contractual amount for the said project is Rs 40.05 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 5.69 crore on net sales of Rs 483.38 crore in Q1 June 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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