Welspun Enterprises shares surged 9 per cent today as National Highways Authority of India (NHAI) signed an agreement with the company for development of the first phase of the Delhi-Meerut Expressway.
The stock zoomed 9.01 per cent to settle at Rs 50.20. During the day, it soared 13.24 per cent to Rs 52.15 .
On NSE, shares of the firm jumped 8.53 per cent to close at Rs 50.25.
"Under the concession agreement, Welspun Delhi Meerut Expressway Private will develop package I of the Delhi-Meerut Expressway at a bid project cost of Rs 841.50 crore, and operate it for a period of 15 years," Welspun Enterprises said on Saturday.
Welspun Delhi Meerut Expressway, a wholly-owned subsidiary of Welspun Enterprises, said 40 per cent of the project's cost will be funded by NHAI while the concessionaire will arrange the balance 60 per cent.
"During the operation period, NHAI will pay concessionaire this 60 per cent in semi-annuity, along with interest thereon," it said.
NHAI will also pay the concessionaire annualised operations and maintenance cost of Rs 3.95 crore for the maintenance of the project road during this period.
