After gaining LoA for the Rs 3,637 crore project, GR Infraproject's stock price increased

28 Aug 2023 , 01:54 PM

After receiving a letter of acceptance (LoA) for the construction of civil works for the Dibang multi-purpose project in Arunachal Pradesh, valued at Rs 3,637 crore, the business reported in an exchange filing on August 25 that its shares increased by more than 3% to Rs 1,314 on August 28.

Shares of the business were up Rs 9.55, or about 1%, on the NSE at 12.15 p.m., trading at Rs 1,282.60.

The Dibang Power consortium, a partnership of GR Infraprojects and Patel Engineering, won the contract to build civil works in the northeast in March.

The company will build a head race tunnel with intake, pressure shafts, penstocks, a powerhouse, a transformer cavern, a tail race tunnel and a pothead yard, according to the exchange report. The company builds and maintains roads, highways, bridges, flyovers and airport runways.

Regarding orders received, the business has been experiencing success.

The business won a National Highways Authority of India (NHAI) project in June by submitting the lowest bid. The NH 530B in Uttar Pradesh will be four-laned from the Kasganj bypass to Chandan Nagar section as part of a Rs 1,085 crore hybrid annuity project. While the operation duration is 15 years, the project must be finished in that time.

The business won a proposal to build a four-lane motorway close to the Yamuna Bridge in May after submitting the lowest bid. Uttar Pradesh’s Kausambhi is where the project is situated. It will be built under the hybrid annuity mechanism (HAM), which requires the government to cover 40% of all costs.

The project’s estimated project cost is Rs 737.17 crore, with an estimated completion date. After the commercial operation date, the operation duration lasts 15 years.

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