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HomeMarket NewsHG Infra shares in focus after ₹4,100 crore order book hit from MSRDC; Details here
The total impacted order value is worth ₹4,142 crore as a result of the cancellations. At the end of the third quarter, HG Infra had reported an overall order book of ₹13,625 crore. Numbers for the March quarter are yet to be disclosed.
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Shares of HG Infra Engineering Ltd. are in focus on Thursday, May 21, after the company said it has excluded orders worth over ₹4,100 crore from the Maharashtra State Road Development Corporation (MSRDC) from its order book.
"To the surprise of the company", MSRDC returned the bank guarantees HG Infra had submitted with regards to the projects against bid security projects and did not communicate any reasons while doing so, the company's exchange filing stated.
HG Infra added that it had sought clarification from MSRDC regarding the status of the projects and reasons for the return of the bank guarantees. However, it has received no formal response or communication regarding the same, till date.
In view of these developments and the uncertainty regarding execution of the projects, HG Infra said it has "as a matter of prudence, decided not to consider the aforesaid projects as part of its executable order book until further clarity emerges from MSRDC".
HG Infra's Two Order Wins In Maharashtra
On May 21, 2024, HG Infra had informed the exchanges that MSRDC had declared it the lowest bidder for the two engineering, procurement and construction (EPC) projects of sections of the Nagpur-Chandrapur Access Controlled Super Communication Expressway.
The 28 km section's estimated project cost was ₹1,554.45 crore as per MSRDC, while HG Infra's bid project cost was ₹1,991.11 crore.
Meanwhile, for another 31.75 km section's, MSRDC estimated project cost was ₹1,654.92 crore, while HG Infra's bid project cost was ₹2,151.11 crore.
The total impacted order value is worth ₹4,142 crore. At the end of the third quarter, HG Infra had reported an overall order book of ₹13,625 crore. Numbers for the March quarter are yet to be disclosed.
Shares of HG Infra ended 1.2% lower on Wednesday at ₹590.45. The stock is down 6% in the last one month and down over 20% so far this year.
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