MEP Infrastructure shares surged as much as 5 per cent to hit intraday high of Rs 44.80 after the road construction company said that it has achieved financial closure for two- and four-laning of road projects in Nagpur valued at Rs 1,170 crore.
MEP Infrastructure Developers in a statement on Monday said that the two projects will be funded by IDBI and India Infrastructure Finance Company (IIFCL).
The projects include four-laning of the Outer Ring Road from village Jamtha to village Fetri for Nagpur City (Package I) with a total length 33.50 km and four-laning of the Outer Ring Road from village Fetri to village Dhargaon (Package II) of 28.05 km.
"The financial viability of such projects will ensure the speedy growth and expansion of our road infrastructure," company's Vice Chairman and Managing Director Jayant Mhaiskar said.
This project, awarded by the National Highways Authority of India (NHAI), will be developed under the new hybrid annuity model, which is a mix of engineering, procurement and construction (EPC) and build operate transfer (BOT) system.
Currently, MEP has a portfolio of six hybrid annuity projects across Maharashtra and Gujarat worth around Rs. 3836.99 crore.
In the quarter ended June 2016, MEP Infrastructure reported net profit of Rs 2.98 crore on sales of Rs 187.55 crore.
As of 1:37 p.m., shares of MEP Infrastructure traded 2.58 per cent higher at Rs 43.75, outperforming the Nifty which was up 1.35 per cent. (With PTI inputs)
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