Infrastructure company won the lottery! NHAI gets project worth Rs 670 crore, stock market booms

GPT Infraprojects: Tuesday, December 23 brought good news for GPT Infraprojects, a well-known company in the infrastructure sector. As soon as a big order was received from the National Highways Authority of India (NHAI), there was a huge jump in the shares of the company in the stock market. The company’s shares increased by 5% in early trading itself. According to the information given by the company to the stock exchange, this new order is worth Rs 670 crore, which has strengthened the order book of the company in the highway sector. Looking at the details of this project, the joint consortium of GPT Infraprojects and ISCPL has won this order. The bid for this was submitted in the name of ‘GPT-ISCPPL (Consortium)’. Under this contract, a major road project will be constructed in Jodhpur city of Rajasthan. This includes construction of a four-lane elevated road from Mahamandir to Akhalia Chowk. The company has clarified that this project will be run under the Hybrid Annuity Model (HM). The specialty of this model is that there is participation of both the government and the private company, due to which the financial risk of the project remains balanced. It is noteworthy that just a few days before this order, on December 18, the Kolkata-based company had also received a big order from Mumbai. The total value of this order placed by Brihanmumbai Municipal Corporation (MCGM) is Rs 1,804.48 crore. The project in Mumbai involves the construction of a new flyover on LBS Road, located in the busy eastern suburbs. This flyover will be built from Kalpana Talkies in Kurla to Panche Shah Dargah in Ghatkopar West. The company has been given 36 months time, excluding the monsoon season, to complete the project in Mumbai. The project has been awarded under the joint venture structure, in which GPT Infraprojects holds a 26% stake. According to this calculation, the value of the work to be awarded to the company is approximately Rs 469.16 crore. Thus, investors have been enthusiastic after receiving two consecutive big orders. This news had a positive impact on the stock market. The share price rose to Rs 116.60 during trading on Tuesday. However, investors should also note that the share price is down 9% in the last 6 months and is down about 21% since the beginning of the year. Nevertheless, the company’s future performance is expected to improve due to new orders.