Shares of MEP Infrastructure Developers gained 6 percent intraday Wednesday after getting letter of appointed date for its road project in Nagpur.
The National Highways Authority of India has given appointed date for road project worth Rs 531 crore vide letter dated January 9, 2017.
In May 2016, MEP Nagpur Ring Road 1 Private Limited, a subsidiary of the company, had entered into a concession agreement with The National Highways Authority of India for four laning stand alone Ring Road/bypass for the Nagpur City Package I from in Maharashtra on BOT (hybrid annuity) basis.
MEP NRR1 had also achieved financial closure in terms of the concession agreement executed with NHAI, by tying up of project finance of Rs 238.95 crore on October 14, 2016.
Construction period of the project is 30 months from the appointed date and concession period is for 15 years, excluding construction period.
MEP Infra said it would receive bi-annual annuity from NHAI post commercial operation date.
Out of Rs 531-crore project cost, the company already tied up for project finance and remaining will be funded by grant from NHAI & equity contribution by itself.
At 11:04 hours IST, the stock was quoting at Rs 40.95, up Rs 0.95, or 2.38 percent on the BSE.
Posted by Sunil Shankar Matkar