IRB Infra hits new low, again

about 2 years ago
No Image

IRB Infra has been week for the past couple of days, hitting new lows. Stock has been losing for the last 6 days and has fallen -23.17% in the period. After yesterday’s low of Rs.102.90, today too it hit another new low at Rs.89.60.

One of its biggest money earners, the toll from the Mumbai-Pune Expressway is coming to an end in less than 2 months. In August 2004, the company had signed a 15-year concession agreement to develop, operate and maintain the Mumbai-Pune section of NH-4, along with the operation and maintenance of the Expressway project. This was also one of the early public-private partnerships (PPPs) in India’s road sector. From August 2019, the ownership and tolling rights will return to MSRDC.

Almost 50% of IRB’s total toll revenue comes from this project.

The National Highways Authority of India (NHAI) plans to find a new operator and it expects the new deal will value the expressway at around Rs 7,000-8,000 crore. A mad scramble and lobbying will begin for a toll which is no longer required as the total cost of the project is already recovered.

Popular Comments