Highway Infrastructure shares jump 9% after Rs 245 crore toll operations win from UP authority, NHAI

Shares of Highway Infrastructure jumped nearly 9% on Thursday to day’s high of Rs 46.80 on NSE after the company received Rs 254 crore toll operations order from UP Authority and NHAI.

According to first filing with the exchange, the company received letter of acceptance (LOA) from Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) for collection of user fees and operation of toll plazas along with deployment of 04 number of patrol-cum-safety vehicles with required personnel manning these vehicles for Gorakhpur Link Expressway worth Rs 220.66 crore.

The time period by which the order or contract is to be executed is two years, and the total cost of the order includes Rs 105.77 crore for the first year and an escalation of 10% per annum for the second-year period.


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According to another filing with the exchange, the company received a letter of acceptance (LOA) from National Highways Authority of India (NHAI) of Rs 24.45 crore for operations at Velanchettiyur Fee Plaza in the State of Tamil Nadu.

This order is for engagement of user fee collection agency on the basis of e-quotation through e- tender for Velanchettiyur Fee Plaza at Km 332+000 for 4 lane divided carriageway facility of Karur to Dindigul Section of NH-7 from Km 292.600 to 373.725 (actual at site 290+000 to Km: 367+725) under NHDP Phase II (TN-04) in the State of Tamil Nadu.

Under this order, the company will do upkeep/maintenance of adjacent toilet blocks including recouping consumable items. The time period by which this order or contract is to be executed is 90 days.

The company further said that in both the contracts, no promoter/ promoter group companies have any interest in the entity that awarded the order(s)/contract(s) and the order(s)/contract(s) would not fall within related party transactions.

Last week, the company announced receiving a Rs 220.66 crore toll operations contract from the Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) for toll collection and allied operations on the Gorakhpur Link Expressway.

The amount payable for the first year is Rs. 105.08 crore, followed by a 10% escalation in the second year. This win strengthened HIL’s tollway collection portfolio and expands its footprint across India’s growing expressway network.

This contract covers the collection of user fees and operation of toll plazas, along with the deployment of four patrol-cum-safety vehicles with the required personnel. It has been awarded for an initial period of two years, with a provision for extension of up to six months at UPEIDA’s discretion

Also Read | Highway Infrastructure shares jump 5% after securing Rs 220 crore order from UPEIDA

Highway Infrastructure share price movement

In the last one month, the shares of Highway Infrastructure gained 4.82%. In the current calendar year so far, the stock was down 19.76% and was down nearly 42.21% in the last one year.

Disclosure: This article has been written by Surbhi Khanna, who is not a SEBI-registered Research Analyst or an investment advisor . Surbhi Khanna does not hold any financial interest in Economic Times as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of the EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.