Here’s why IRB Infrastructure stock rose 19% on Monday
On Monday, IRB Infrastructure's stock made headlines as the company's private Infrastructure Investment Trust (InvIT) won an arbitration claim against the National Highways Authority of India (NHAI). The arbitration decision pertains to the Yedeshi-Aurangabad NH211 BOT project. The arbitral tribunal has instructed NHAI to compensate IRB Infrastructure Trust with nearly Rs 1,720 crore, inclusive of interest.
IRB Infrastructure's stock made headlines on Monday, as the company's private Infrastructure Investment Trust (InvIT) won an arbitration claim against the National Highways Authority of India (NHAI).
The arbitration decision pertains to the Yedeshi-Aurangabad NH211 BOT project, owned by IRB Infrastructure Trust, the private InvIT associated with the company.
The arbitral tribunal has instructed NHAI to compensate IRB Infrastructure Trust with nearly ₹1,720 crore, inclusive of interest. Additionally, the construction period for the project will be extended by 689 days.
The benefit to IRB Infra comes in the form of receiving compensation for the time and cost overruns experienced as an Engineering, Procurement, and Construction (EPC) contractor.
Furthermore, CLSA has issued a note on IRB Infra, highlighting the outperformance of infrastructure development stocks compared to indices in the past three years. They anticipate this trend to continue for another year, attributing it to robust traffic trends on most toll roads.
CLSA also sees potential opportunities arising from the government's asset monetization plans for roads. They have adjusted the target price for IRB Infra's stock to ₹63 per share, considering earnings per share (EPS) upgrades resulting from new project wins.
Closing at ₹60.80 on Monday, IRB Infra's stock witnessed an impressive gain of 19.92%. The Mumbai-headquartered company boasts a market capitalisation of ₹36,445 crore and has yielded returns of around 126% in the last six months.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Exclusive interview: 'Southern states will be a big surprise,' says PM Modi
May 13, 2024 9:05 PM
PM Modi's Patna visit: From serving langar to historic roadshow
May 13, 2024 5:13 PM