GMR Infrastructure gains on starting commercial operations of two highway projects

GMR Infrastructure is currently trading at Rs. 19.10, up by 0.10 points or 0.53% from its previous closing of Rs. 19.00 on the BSE.

The scrip opened at Rs. 19.00 and has touched a high and low of Rs. 19.15 and Rs. 18.90 respectively. So far 1,20,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 34.40 and a 52 week low of Rs. 16.75.

Last one week high and low of the scrip stood at Rs. 19.10 and Rs. 18.20 respectively. The current market cap of the company is Rs. 7,434.00 crore.

The promoters holding in the company stood at 71.62% while Institutions and Non-Institutions held 18.87% and 9.52% respectively.

GMR Infrastructure has commenced commercial operations of the Hyderabad-Vijayawada section of National Highway 9 and the Hungund-Hospet section of National Highway 13. With the commencement of these two projects, the Group has now a portfolio of eight operating highways. The two new projects are expected to generate revenue in the range of Rs 75-80 lakh per day for the former and Rs 18-20 lakh per day for the latter.

The Hyderabad-Vijayawada project was awarded through an international competitive bidding by NHAI on a DBFOT basis with a concession period of 25 years including a construction period of 2.5 years. The four laning of the 181.5 km stretch has been completed as per requirements and also opened for traffic.  

With the completion of four laning of Hyderabad-Vijayawada section of NH?9, the distance of 260 km will be covered in less than 5 hours compared to 6-8 hours prior to the construction. Six new bypasses are developed around the towns of Narketpally, Nakrekal, Kodad, Akupamula, Sher Mohammed Peta and Navabpet which aid in decongesting the towns. 

The project highway is part of the NH?9 connecting Mumbai/Pune in Maharashtra with Machilipatnam in Andhra Pradesh en?route connecting the two major economic hubs of Andhra Pradesh namely Vijayawada and Hyderabad which are witnessing multi?fold growth. It is also a vital facilitating east?west traffic movement connecting the two segments (Mumbai-Chennai and Chennai-Kolkata) of Golden Quadrilateral. 

The project highway is part of the NH?13 connecting Sholapur in Maharashtra and Mangalore in Karnataka and provides connectivity between mineral rich and highly industrialized districts of Karnataka and rest of India thus carrying heavy commercial traffic. It also links the local industry with Mangalore and Karwar ports for export. Thus the highway is expected to provide stimulus to the local steel, fertilizer and chemical industries. This project will also boost the tourism to Hampi, Kishkindha, Bellary Fort, Badami etc. The corridor shall play a vital role in the economic development of the region.

GMR Infrastructure is a Bangalore headquartered global infrastructure major with interests in Airports, Energy, Highways and Urban Infrastructure sectors.