IL&FS Transport stock spurts 4% on Rs550Cr arbitration award
Shares of IL&FS surged 4%, after the company announced winning of Arbitration Award. The company stated that its subsidiary, Pune Sholapur Road Development Company, has won an Arbitration Award of Rs547Cr in a dispute against the National Highways Authority of India.
The subsidiary had received an order for the development and management of Pune-Solapur section of NH-9 in Maharashtra from NHAI. Later, NHAI claimed compensation for the losses on account of over-run in the construction phase of the project.
IL&FS Transportation Network is a leading surface transportation infrastructure company. It is largest private sector BOT road operator (in terms of lane km) in India. Company’s current order book comprises of 64% road toll, 30% road-annuity and balance from non-road.
The company has received COD for three projects which is expected to aid revenue growth. Hence, company expects to earn toll of Rs.13cr/day in FY18E vs current Rs9.55cr/day. Company’s current domestic order book stands at Rs.12351cr and also has qualified itself for the order worth Rs.31,592cr.
IL&FS Transportation Networks Ltd closed at Rs 83, up by Rs 3.85 or 4.86% from its previous closing of Rs 79.15 on the BSE.
The scrip opened at Rs 78.4 and has touched a high and low of Rs 85.4 and Rs 78.3 respectively.
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Via:: Stock – India Infoline