IL&FS Transportation zooms over 9 per cent upon entering settlement agreement with NHAI
IL&FS Transportation Networks witnessed a leap of 9.3 per cent in its share price on intraday basis on Wednesday subsequent to the company signing a settlement agreement with NHAI.
NHAI worked out an agreement to pay a settlement of Rs. 425 crore to Moradabad Bareilly Expressway (MBEL), to compensate for the losses it incurred as a consequence of the cost overrun for the development of the project. MBEL is a subsidiary of IL&FS Transportation Networks.
The claims against NHAI concern the work of development, maintenance and management of a highway from Moradabad to Bareilly in Uttar Pradesh, as reported by the company in a press release. It also added that the settlement agreement is not open to appeal by NHAI and the disbursement of the compensation amount will be executed by NHAI in due course.
IL&FS Transportation Networks Limited is engaged in the business of infrastructure development and financing for the last 25 years. Formed in 2002, the company is the largest BOT road asset owner in the country having approximately 13,100 lane km in its portfolio. Besides being a market leader in the Transportation Infrastructure Sector, the company also operates in Metro Rail, City Bus Services and Border Check-Posts. The company acquired Elsamex S.A. which is a highway operations and maintenance and allied services provider company based in Spain. In doing so, the company has an international footprint covering Spain, Portugal and Latin America.
The company’s share price had been on a downward trend for the last 6 months as it declined 60 per cent. On Wednesday, September 19, 2018, the shares of IL&FS Transportation Networks Limited opened at Rs. 26.70 per share, hitting a high of Rs. 27.40 per share. At 11:18 am, the shares were trading at Rs. 25.90 each, up 3.39 per cent.