IRB Infrastructure Developers share price plunged as much as 4.2 per cent in the early trade on Wednesday after the government cancelled the bid process for Jammu and Kashmir (J&K) project without giving any reasons.
At 9.25 am, IRB Infrastructure shares were trading 2 per cent down at Rs 219.05. The scrip opened at Rs 218 and has touched a high and low of Rs 222 and Rs 214, respectively, in trade so far.
However, the scrip wiped off initial losses and closed 0.72 per cent up at Rs 225.10.
Earlier, on January 3, IRB Infrastructure Developers informed BSE that the company have received the Letter of Award (LoA) from Ministry of Road Transport & Highways for construction, operation and maintenance of Zozila Tunnel including approaches on NH-1 (Srinagar – Sonmarg – Gumri Road) in the State of Jammu & Kashmir on Design, Build, Finance, Operate & Transfer (Annuity) basis. The estimated project cost was approximately Rs 10,050 crore.
In a BSE filing IRB Infrastructure Developers on March 1 said, “The company have received communication from the Ministry of Road Transport & Highways (MORT&H) that they have decided to cancel the bid process for the project and cancelled the LoA without assigning any reasons.”
In the past one year, the share price of IRB Infrastructure slid 13.24 per cent to Rs 223.50 till March 1, whereas the BSE Sensex tumbled 19.28 per cent during the same period.
For the quarter ended December 2015, the company reported a consolidated net profit of Rs 169.61 crore, up 27.95 per cent, against Rs 132.56 crore in the corresponding quarter a year ago. Consolidated gross sales of the company grew 38.34 per cent year-on-year to Rs 1333.32 crore.