There was some uncertainty where or not IRB Infra will get the extension to collect the toll on the Mumbai-Pune expressway.
That uncertainty was dispelled when the company, announced yesterday that IRB MP Expressway Private Limited (‘SPV’) has received a Commencement Order from the Competent Authority. Consequently, the SPV has started toll collection from 1st March 2020 on both Expressway and NH-48 section of Mumbai-Pune Project.
Key Highlights of the Project are as under:
· IRB to pay upfront payment of Rs. 6500 crore to MSRDC and a further staggered payment of Rs. 850 crore in year 2, Rs. 850 crore in year 3 and Rs. 62 crore in year 4, aggregating to Rs. 8,262 crore for Sub-Concession Period of 10 years and 2 months;
· The Project is on Tolling, Operation, Maintenance and Transfer basis. Project Length is approx. 205.40 Kms. including Expressway and NH-48 section of Mumbai-Pune Corridor;
· The Sub-Concession Period of the project is until April 30, 2030 i.e. 10 years and 2 months.
The market is happy with this deal and the stock price, which had closed on Friday at Rs.83.95, opened today at Rs.86.20 and went on to an intraday high at Rs.87.80.
Its 52-week high is at Rs.159.80 and low at Rs.56.10.