Afcons Infrastructure JV Wins Water Supply Project Worth Rs 504 Crore
Afcons Infrastructure also received a tax demand worth Rs 4.04 lakh from the Kerala Goods and Services Tax Department for financial year 2024–25.
A joint venture between Afcons Infrastructure Ltd. and Hindustan Project was declared as the lowest bidder for a water supply project worth Rs 503.9 crore under the Jal Jeevan Mission.
Afcons-Hindustan JV bagged the contract from the Rajasthan Public Health Engineer Department via an e-procurement system. The water supply project is for 353 villages in Dungarpur district, according to the exchange filling on Wednesday.
The project includes operation and maintenance for 10 years after a defect-liability period of a year, it said.
Afcons Infrastructure also received a tax demand worth Rs 4.04 lakh from the Kerala Goods & Services Tax Department for financial year 2024–25 after a vehicle was detained due to non-availability of prescribed documents during the transportation of goods.
The company has not contested the demand order and has paid the amount to the GST authority. There will be no material impact on the financials or operation, the infrastructure construction firm said in another filing.
Shares of Afcons Infrastructure had made a tepid debut on the exchanges, listing at an 8% discount on the National Stock Exchange. The company's management had said that the focus would now be on corporate governance to attract investors.
Shares of Afcons Infrastructure rose as much as 3.93% during the day to Rs 554.85 apiece on the NSE. The stock closed 1.77% lower at Rs 524.40 per share, compared to a 0.13% advance in the benchmark Nifty . The share price has risen 10.59% since its listing in November.
An analyst tracking the company maintains a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 16.3%.
