SPML Infra zooms 5% on securing arbitration award worth Rs712 crore; filed other claims worth Rs3,000 crore

12 Apr 2022 , 10:51 AM

India’s leading water management and infrastructure development company, SPML Infra Limited has secured several Arbitration Awards of a cumulated amount of Rs712 crore (including interest upto 30th Sept 2019) for the projects from different clients in India.

The PSU clients, against whom the Company has received the awards, have preferred to appeal the same, which are presently at various levels of hearing at the Courts. However, the company is very confident of receiving the full amount of Arbitral Awards along with the interest upto the date of receipt in due course.

SPML Infra has substantial claims which are expected to be converted into arbitral awards in the next few years. The Company has already filed its claims and is in the final stages of filing several claims with the value of Rs3,000 crore (USD 393.4 million) over and above the Arbitral Awards of Rs712 crore that have been awarded and are expected to be realized in due course of time.

From the historical track record and based on the various studies conducted on the subject by the Company and different stakeholders, including lenders, SPML Infra expects higher realization of its claims, however, the Lenders have conservatively considered the realization of Rs1,076 crore from Claims & Awards over a period of time in the on-going debt resolution plan, in-principally agreed by them.

Out of the aforesaid Rs712 crore, there is clarity on Rs287 crore which have been partly received by the Company at its bank account and also deposited with the Court.

The Company also expects further deposits of sizeable amounts as per the directions of the Courts. The aforesaid Rs287 crore and such further amounts as deposited at Courts and realized by the Company will be used for the reduction of debts of the lenders.

SPML Infra’s counter is currently trading at Rs69.45 up by Rs3.3 or 4.99% from its previous closing of Rs66.15 on the BSE. The scrip opened at Rs69.40 and has touched a high and low of Rs69.45 and Rs67.55 respectively.