HG Infra stock under pressure after PWD Rajasthan cancels tender

13 Jan 2022 , 10:16 AM

Public Works Department (PWD) has canceled the tender of H.G. Infra Engineering Limited (HGIEL) for the development and maintenance of Beawar Masuda Goyala Section of SH 26A, Arain Sarwar Section of SH-7E, NH-12 Laxmipura Dora Dabi Ranaji ka Gudha Section of SH-115 in Rajasthan.

“Rajasthan, vide its order dated January 10, 2022, received by the Company on January 11, 2022, has annulled the tender for “Development and Maintenance of (1) Beawar Masuda Goyala Section of SH 26A (Length 66.77 km); (11) Arain Sarwar Section of SH-7E (Length 44.260 km) & (111) NH-12 Laxmipura Dora Dabi Ranaji ka Gudha Section of SH-115 (Length 49.60 Km); (Total Length: 160.630 km) through Public Private Partnership (the “PPP”) under Design, Build, Operate/Maintain & Transfer (the “DBOT Hybrid Annuity”) Basis”.

The Letter of Award (LOA) dated November 02, 2021 issued by the PWD, Rajasthan to the Company for an amount of Rs331.11cr against the HGIEL Bid Project Cost of Rs448.11cr was not accepted by the Company,” company said in a filing on Wednesday.

At around 10.20 am, H.G. Infra Engineering Ltd was trading at Rs581.50 per share down Rs7.05 or 1.20% from its previous closing of Rs588.55 per share on the BSE.