MEP Infrastructure shares surged as much as 7.89 per cent in the early trade on Friday after it informed bourses that it has received Letter of Acceptance from Road Infrastructure Development Company of Rajasthan (RIDCOR) to collect fee through contractor at two stretches on Alwar-Sikandra Road. Later, the share price of the company closed 2.24 per cent up at Rs 38.85.
The operations have commenced from April 1, 2016 and the contractual amount for the said project is Rs 19.08 crore payable to RIDCOR on a weekly basis over a period of 1 year.
The company has been engaged as the contractor for collection of fee through contractor on the basis of competitive Bidding for Alwar-Sikandra Road in Rajasthan for fee plaza at Banganga Bridge at Km 4 for the stretch from Km 0 to Km 20 of Alwar Sikandra Section for 20 Km and Mahwa Khurd Village at Km 64 for the stretch from Km 20 to Km 77 of Alwar Sikandra Section for 57 Km
On a year-to-date basis, the share price of MEP Infra slipped 17.03 per cent to Rs 38 on March 31, 2016, whereas BSE Sensex slipped 3.13 per cent during the same period.
For the quarter ended December 2015, MEP reported consolidated net profit of Rs 5.28 crore, up 115.07 per cent, against net loss of Rs 35 crore in the same quarter last year.
MEP Infrastructure Developers is engaged in tolling operations of the road infrastructure sector, with a pan-India presence. MEP Infra is in the business of pure toll collection projects as well as OMT projects, which involve maintenance obligations in addition to toll collection on operational roads (including highways) constructed by third parties.