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Shares of GMR Infrastructure today settled for the day with gains of over two per cent as the company forayed into railway sector and accordingly, the market capitalisation of the company swelled by Rs 157 crore.
GMR today said it has forayed into the railway sector, winning a construction package worth Rs 267 crore, alongwith partners, including Tata projects from Rail Vikas Nigam.
Reacting to the development, shares of the company opened on a bullish note and then surged 2.69 per cent to an intra- day high of Rs 20.95. At the end of today's trading the shares of the company was quoted at Rs 20.85, higher by 2.21 per cent from its previous closing price.
Accordingly, the market capitalisation of the company swelled by Rs 157 crore, to Rs 8,096 crore.
A consortium led by the company with partners such as Tata Projects and Kalindee Rail Nirman would carry out the project which includes construction of roadbed, bridges, track linking, outdoor S&T works, OHE (Over Head Equipments) and general electrical works from Jhansi to Erich Road.
Rail Vikas Nigam had issued the Letter of Award to GMR consortium on Feb 20, 2014. The project is scheduled to commence from April 2 and would be completed in 42 months.
"As part of our asset light strategy, we are very happy to announce our first foray into the very promising railway construction sector. This win reflects our long-term vision of building our EPC expertise in a niche segment like Railways, and will pave the way for similar projects in future," said Arun Kumar Sharma, CEO, GMR Urban Infrastructure & Highways.
