Sadbhav Infrastructure announced that its Rohtak-Hissar Tollway Private Limited (a wholly owned subsidiary of the Company or SPV or RHTPL), has submitted Notice of Termination of project as per Concession Agreement dated 27th May, 2013 with National Highways Authority of India (NHAI) on 28th August.
This was due to forceful suspension of toll collection/ User Fee because of the farmers’ agitation / protest with effect from December 25, 2020.
This is now a Force Majeure Event as per the provisions of the Concession Agreement with NHAI.
The impact is likely to be in favour of the lenders as well as the company as the toll collection was at standstill for more than six months. NHAI in line with terms and conditions of Concession Agreement being met, will take over the project.
Following this news, the stock price reacted positively, going on to hit the 5% UC of the day at Rs.16.95. Its 52-week high is at Rs.41.50.