IRB Infrastructure Surges as Arbitration Tribunal Favors Yedeshi Aurangabad Tollway in NHAI Dispute

29 Jan 2024 , 03:47 PM

IRB Infrastructure Developers’ shares surged by nearly 13.5 % on January 29 following a favorable arbitration tribunal ruling. The Arbitration Tribunal ruled in favour of Yedeshi Aurangabad Tollway (YATL), an IRB SPV, in proceedings against the NHAI.

IRB Infrastructure Developers disclosed in a regulatory filing that the compensation awarded amounts to ₹1,681 crore. Additionally, IRB is entitled to receive further interest as per the terms of the award.

The project, initiated by YATL in July 2015, faced delays in completion until September 24, 2020, due to land handover issues and other reasons.

The delay incurred time and cost overruns, leading to a compensation claim by YATL against NHAI in March 2021, which was disputed and led to arbitration. IRB Infrastructure reported a 26 % year-on-year increase in toll collection for the quarter ending December 2023 in December 2023.

The company is set to announce its Q3 results on January 31, following a 12 % year-on-year increase in net profit reported in Q2FY24.

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