G R Infraprojects Secures Rs.904 Crore Metro Construction Contract in Maharashtra

G R Infraprojects Ltd. has emerged as the lowest bidder for a major metro construction project worth Rs.904 crore, awarded by Maharashtra Metro Rail Corporation Ltd. in Nagpur. This substantial project involves designing and constructing an elevated metro viaduct extending 17.62 km, which includes two railway spans of 79 meters and 100 meters.

Project Details

In addition to the viaduct, the project consists of the engineering, procurement, and construction (EPC) of a six-lane double-decker segment that features a 1.14 km vehicular underpass in Reach-1A of NMRP Phase-2. The entire project is scheduled for completion within a 30-month timeframe and is expected to deliver timely.

Earlier this month, G R Infraprojects received a project-specific special-purpose vehicle, Tumkur-II REZ Power Transmission Ltd., from REC Power Development and Consultancy. This initiative includes establishing a 400/220 kilovolt, 4X500 megavolt-amperes pooling station near Tumkur, Karnataka, along with constructing a 27.2 km 400 kilovolt line.

Share Performance

Following the announcement of the metro project win, G R Infraprojects’ stock experienced notable activity, rising by 6.12% in early trading to reach Rs.1,774.95. On the NSE, the shares rose as much as 2.01% during the day, closing at Rs.1,665.95, despite a slight overall decline. The company’s stock has demonstrated a good performance, gaining 36% over the past year and 50% year-to-date.

Growth Prospects

As of March 31, 2024, G R Infraprojects boasts an order book totaling Rs.16,780.61 crore. The company has also secured various projects during FY24, including two road projects under the Hybrid Annuity Model valued at Rs.1,615.70 crore and a tunneling project worth Rs.1,541.15 crore.

Conclusion: G R Infraprojects’ contract win in the metro construction sector brings out its growth trajectory. With a stock price surge of over 50% since December 2023, the company seems well-positioned to capitalize on India’s infrastructure market, backed by the government’s National Infrastructure Pipeline program, which anticipates a massive $1.4 trillion investment in various sectors by 2025.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.