Ashoka Buildcon gains as JV emerges highest bidder for TOT project

Shares of Ashok Buildcon has surged 7% to Rs 235 after the JV between the company and Macquarie has emerged as the highest bidder for the first batch of toll-operate-transfer projects from NHAI.

Shares of Ashok Buildcon surged 7% to Rs 235 on the BSE in early morning trade after the joint venture (JV) between the company and Macquarie has emerged as the highest bidder for the first batch of toll-operate-transfer (TOT) projects from National Highways Authority of India (NHAI). The venture bid Rs 96.8 billion for the NHAI project.

The company’s bid was 1.5 times higher than the base price of Rs 62.6 billion. “The base price is a tentative price set by the NHAI. It is a reasonable price, as it will be split into debt and equity and the equity component would be financed from the $3 billion raised by MAIF-II (Macquarie Asia Infrastructure Fund-II),” Macquarie India Head Suresh Goyal told Business Standard. CLICK HERE TO READ FULL REPORT

Meanwhile, Ashoka Buildcon informed the stock exchanges that the Company's subsidiary Ashoka Concessions Limited ('ACL') had submitted its bid to NHAI for the project viz. six laning of Khairatunda to Barwa Adda Section of NH-2 from km. 360.300 to km. 400.132 in the State of Jharkhand under NHDP Phase-V on Hybrid Annuity Mode.

ACL emerged as 'the Lowest Bidder' at the financial bid opening meeting held on February 28, 2018 at New Delhi. The Company quoted bid project cost is Rs 8.6 billion.

At 09:44 am; the stock was trading at Rs 233, up 6.7% on the BSE, as compared to a marginal 0.03% rise in the S&P BSE Sensex. The trading volumes on the counter jumped multiple-folds with a combined 220,638 shares changed hands on the BSE and NSE so far.