HG Infra Engineering Subsidiary Wins Order Worth Rs 862 Crore From NHAI
The project is to be completed in 24 months and the work will be carried out under the hybrid annuity mode.
A wholly owned subsidiary of HG Infra Engineering Ltd. has won an order worth Rs 862 crore from the National Highway Authority of India, according to an exchange filing on Friday.
HG Chennai-Tirupati (II) Highway Pvt. received the letter from the NHAI regarding the declaration of appointed date of Dec. 14. for the project, which is to be completed in 24 months, the construction firm said.
The project involves the construction of a four-lane access-controlled highway from the Tamil Nadu/Andhra Pradesh border to Puttur on NH-716, and a six-lane highway from Mallavaram to Renigunta on NH-71 in Andhra Pradesh. The work will be carried out under the hybrid annuity mode as part of the NH(O) Chennai-Tirupati Package-II, it said.
Earlier this week, the company received a letter of acceptance from the Ministry of Road Transport and Highways to improve and upgrade a two-lane road along National Highway 227B in Uttar Pradesh. HG Infra's bid project cost stood at Rs 763.1 crore. The project is to be executed under the hybrid annuity mode, and the construction is to be completed in two years, it added.
Shares of HGIEL fell as much as 3.08% during the day to Rs 1,496.85 apiece on the National Stock Exchange. The stock closed 1.2% lower at Rs 1,468.80 per share, compared to a 0.89% advance in the benchmark Nifty. The share price has risen 73.13% on a year-to-date basis.
Fifteen out of the 16 analysts tracking the company have a 'buy' rating on the stock and one recommends 'hold,' according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 18.4%.
