Nila Infra rises almost 7%

Intraday, Nila Infrastructure rose almost 7% to Rs.17.35 with a 3 times surge in volumes. Its 52-week high is at Rs.19.90.

The company has entered into two separate Letter of Acceptance ("LOA") with Gujarat State Road Transport Corporation ("GSRTC") for development of Bus Terminal under Public Private Partnership.

One LOA is executed by the company for development of 'Amreli Bus Terminals and another LOA is executed in consortium with M/s Vyapti Infrabuilt for development of 'Modasa Bus Terminal' where Nila has a 34% stake.

The Bus Terminal Facility (BTF) Construction work envisages development of the latest infrastructure including bus bays, administrative area, operating area, works/repairs area, passenger amenities, etc. The SPV of the Company will have to maintain certain basic BTF facility for 30 years, while the core operating and depot facility will be maintained by GSRTC.

In consideration, the Company will get the right to develop, design, finance, construct, operate and maintain the CF (shops, offices, restaurants, hospitals, multiplex, parking lots, etc.) to be leased upto period of 90 years.

The Amreli BTF facility will be constructed at an estimated cost of Rs.14 crore, incorporating 12 boarding/alighting bays and six (6) idle bays. In consideration, the company is getting right to monetise CF of about 12,800 square meters. While, at Modasa, out of the total area of 30,212 square meters, the BTF facility will be constructed in 6,279 square meter at an estimated cost of Rs.15 crore incorporating 11 boarding/alighting bays and 7 idle bays. In consideration, the company has got the right to monetise CF of about 39,000 square meters.

The projects are expected to be completed in 24 months.