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MEP Infra strengthens after receiving fee collection rights for toll plaza

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Capital Market
Last Updated : Jan 21 2017 | 12:01 AM IST

MEP Infrastructure Developers rose 3.57% to Rs 37.70 at 10:30 IST on BSE after the company received user fee collection rights at Brijghat fee plaza in Uttar Pradesh.

The announcement was made during market hours today, 3 January 2017.

Meanwhile, the BSE Sensex was unchanged at 26,595.68.

On the BSE, 23,297 shares were traded in the counter so far, compared with average daily volume of 45,621 shares in the past one quarter. The stock had hit a high of Rs 39 and a low of Rs 36.30 so far during the day. The stock had hit a 52-week high of Rs 50 on 23 September 2016. The stock had hit a record low of Rs 34 on 24 November 2016.

The stock had outperformed the market over the past one month till 2 January 2017, rising 3.56% compared with Sensex's 1.39% rise. The scrip had, however, underperformed the market in past one quarter, dropping 10.57% as against Sensex's 4.56% decline.

The small-cap company has equity capital of Rs 162.57 crore. Face value per share is Rs 10.

MEP Infrastructure Developers announced that it has received the letter of acceptance (LOA) dated 2 January 2017 from National Highways Authority of India (NHAI) informing that it has been engaged as the contractor for the collection of user fee through competitive bidding on e-tender basis only for Brijghat fee plaza for the section of Hapur-Garhmuketeshwar of National Highways No. 24 in Uttar Pradesh.

The period of the contract is one year. The contractual amount for the project is Rs 60.03 crore payable to NHAI on a weekly basis over a period of one year.

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The operations will commence within two days after complying the statutory formalities namely, submission of performance security, signing of contract as per the letter of acceptance.

On a consolidated basis, MEP Infrastructure Developers' reported net profit of Rs 62.42 crore in Q2 September 2016 as compared with net loss of Rs 11.23 crore in Q2 September 2015. Total income rose 22.2% to Rs 570.13 crore in Q2 September 2016 over Q2 September 2015.

MEP Infrastructure Developers is among the leading players in tolling operations in the road infrastructure sector.

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First Published: Jan 03 2017 | 10:26 AM IST

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