IRB Infra shares gain 11% in two sessions as firm wins highway project in Gujarat

Shares of IRB Infrastructure Developers rose for the second straight session today after the leading highways infrastructure developer said it has emerged as a preferred bidder for the Rs 2,132-crore build-operate-transfer (BOT) project in Gujarat. Sentiment around the stock was also positive as it traded with the adjustment of 10:1 split on bourses today.

IRB Infrastructure shares gained 6.04% to Rs 31.60 against the previous close of Rs 29.80 on BSE. In the last two sessions, the stock has gained over 11%. In the previous session, the stock closed 5.18% higher on BSE.

IRB Infrastructure stock is trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. In a year, the stock has gained 29.43% and risen 6% this year.

Total 21.83 lakh shares of the firm changed hands amounting to a turnover of Rs 6.73 crore on BSE. The stock hit its 52-week high of Rs 32.93 on December 14, 2022 and a 52-week low of Rs 17.91 on June 20, 2022. Market cap of the firm rose to Rs 18,479 crore on BSE.

The 6-lane 90.90-km stretch between Samakhiyali to Santalpur will be constructed for Rs 2,132 crore, the company said in a regulatory filing.

"Upgradation to Six Lane with paved Shoulder of NH-27 from Samakhiyali to Santalpur section from km. 339+200 to Km. 430+100 in Gujarat on BOT (Toll) Mode," said the firm.

Upon award of this project, the company's order book will stand revised to approximately Rs. 20,892 crores (excluding GST), which includes construction order book of Rs. 9,714 crore providing strong visibility for the next 2.5 years, the firm added.

Virendra D Mhaiskar, chairman and MD, IRB Infra, said that the project is the sixth such project that the company will execute in Gujarat.

"The present project will be an important addition to IRB portfolio as this project caters to heavy commercial traffic connecting the Kandla and Mundra port and is brownfield part of the prestigious Amritsar Jamnagar expressway," Mhaiskar said.

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