MEP Infrastructure Developers rose 1.73% to Rs 58.65 at 14:45 IST on BSE after the company said it won rights from the National Highways Authority of India to collect toll at Paduna toll plaza in Rajasthan.
The company made the announcement during trading hours today, 13 May 2015.
Meanwhile, the BSE Sensex was up 329.25 points, or 1.23%, to 27,206.73.
On BSE, so far 4.96 lakh shares were traded in the counter. The stock hit a high of Rs 61.80 and a low of Rs 57.50 so far during the day.
The small-cap company has an equity capital of Rs 162.57 crore. Face value per share is Rs 10.
Shares of MEP Infrastructure Developers (MEP) were listed on stock exchanges on Wednesday, 6 May 2015. The stock debuted at Rs 63 on BSE, at par with its initial public offer (IPO) price of Rs 63. On that day, it settled at Rs 60.95 on BSE, a discount of 3.25% over the IPO price.
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MEP announced that it has been awarded by the National Highways Authority of India (NHAI) the rights for collection of user fee through fee collecting agency on the basis of competitive bidding though e-tender for Paduna toll plaza at Udaipur-Kherwada stretch of National Highway (NH) No 8 in Rajasthan.
MEP executed the contract agreement on 11 May 2015 with NHAI. As per the agreement, the commercial operations commenced from 12 May 2015 and period of the contract is 1 year (12 months). The contractual amount for the said project is Rs 100.08 crore payable to NHAI on a weekly basis over the period of 1 year.
Meanwhile in a separate announcement, MEP announced during trading hours today, 13 May 2015, MEP is part of a Limited Liability Partnership (along with 3 other partners) named SMYR Consortium LLP (SMYR) in which MEP is currently holding 25% stake. SMYR executed a concession agreement on 11 May 2015 (titled - Toll Tax Collection and Toll Plaza Development Agreement) with South Delhi Municipal Corporation (SDMC) for the toll tax collection at border points from specified commercial vehicles entering Delhi.
The agreement calls for toll collection, development of toll plazas, up-gradations/modifications of toll plazas on behalf of SDMC as per NHAI standards, operations and maintenance for a period of three years.
The date of execution of the concession agreement is 11 May 2015. The operations shall commence from 16 May 2015. Period of the contract is 3 years (36 months).
The contractual amount for the said project is Rs 1653.48 crore, payable to SDMC on a weekly basis over the period of 3 years.
The IPO of MEP Infrastructure Developers ended on 23 April 2015 with a subscription of 1.11 times. Bidding for the IPO ended on 23 April 2015. The IPO received bids for a total of 4.45 crore. Since the company had already assigned 1.11 crore equity shares for allotment to anchor investors a day before the opening of the IPO, the remaining upto 4.03 crore shares were offered through the book-building route during the IPO period from 21 April to 23 April 2015. The company had priced the IPO at the bottom end of the Rs 63 to Rs 65 price band.
On 20 April 2015, MEP Infrastructure Developers raised Rs 72.40 crore by allotting 1.11 crore equity shares to a total of four anchor investors. The pricing of the shares to the anchor investors was at Rs 65 per share, which is the top end of the price band of Rs 63-65 for the IPO.
The company intends to utilize major proceeds of the IPO to repay borrowings from financial institutions. MEP Infrastructure Developers (MEP) is among the leading players in tolling operations in the road infrastructure sector. The company's focus is on pure toll collection projects as well as OMT (Operation, Maintenance and Toll) collection projects, which involve maintenance obligations in addition to toll collection on operational roads including highways constructed by third parties. A significant portion of the company's revenue is generated from the five Mumbai entry points, of which the company undertakes maintenance of and collection of toll.
On consolidated basis, MEP reported a net loss of Rs 121.41 crore on net sales of Rs 1197.91 crore for the year ended 31 March 2014 (FY 2014). The company reported net loss of Rs 97.30 crore on net sales of Rs 1114.32 crore for the seven months ended October 2014.
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