GMR forays into Railway Biz – Bags INR 1.35 Bn Jhansi-Bhimsen Track Doubling Project

GMR-Infrastructure_4Jhansi Jn (JHS):  GMR Infrastructure Ltd, the  infrastructure holding company of GMR Group, has won construction package of rail line doubling between Jhansi and Bhimsen stations in the State of Uttar Pradesh, India. The total contract is valued at approximately Rs.2.67 billion of which GMR’s share of work is about Rs.1.35 billion.

The work includes construction of roadbed, major & minor bridges, track linking, outdoor S&T works, OHE, TSS and general electrical works from Jhansi to Erich Road.

GMR is the lead member of the consortium with Tata projects and Kalindee Rail Nirman as the partner for OHE and Track works, S&T works respectively. The project is scheduled to commence from Apr. 2, 2014 and duration for completion of the project is 42 months.

GMR, today said it has forayed into the railway sector, winning a construction package worth Rs 267 crore, alongwith partners, including Tata projects from Rail Vikas Nigam. A consortium led by the company with partners such as Tata Projects and Kalindee Rail Nirman would carry out the project which includes construction of roadbed, bridges, track linking, outdoor S&T works, OHE (Over Head Equipments) and general electrical works from Jhansi to Erich Road.

Rail Vikas Nigam had issued the Letter of Award to GMR consortium on Feb 20, 2014. The project is scheduled to commence from April 2 and would be completed in 42 months.

Arun Kumar Sharma, CEO GMR Urban Infrastructure & Highways expressed, ”As a part of our Asset Light strategy, we are very happy to announce our first foray into the very promising railway construction sector. This win reflects our long term vision of building our EPC expertise in a niche segment like Railways, and will pave the way for similar projects in future.”

GMR Infra stock up over 2% on bourses; m-cap up by Rs.157 Crore

Shares of GMR Infrastructure today settled for the day with gains of over two per cent as the company forayed into railway sector and accordingly, the market capitalisation of the company swelled by Rs

157 crore. Shares of the company gained Rs 0.2, or 0.98%, to trade at Rs 20.60. The total volume of shares traded was 53,035 at the BSE (9.51 a.m., Tuesday).

Reacting to the development, shares of the company opened on a bullish note and then surged 2.69 per cent to an intra- day high of Rs 20.95. At the end of today’s trading the shares of the company was quoted at Rs 20.85, higher by 2.21 per cent from its previous closing price.

Accordingly, the market capitalisation of the company swelled by Rs 157 crore, to Rs 8,096 crore.

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