KNR Constructions gets sanctions for HAM projects, stock reverses

A multi-domain infrastructure project development company KNR Constructions has received sanction from the bank for its wholly-owned subsidiary, KNR Shankarampet Projects. The company has received sanction on September 12 to finance its HAM (Hybrid Annuity Mode) projects. The bid project cost is worth Rs. 1,234 crores which is for 4 laning of Ramsanpalle to Mangloor section of NH-161 under Bharatmala Pariyojana in Telangana.

The construction and concession period are 2 years and 17 years, respectively and hence the company is well within time. During Q1FY19, the company had received five HAM road projects amounting to Rs. 5,611.21 crores (BPC) where three out of the five had received sanctions from banks for funding the projects before the end of Q1.

The stock of KNR Constructions saw a positive day on Friday after eight consecutive days of downfall. The stock had surged as much as 6.9 per cent from its previous close to Friday’s high and closed gaining 3.3 per cent at 207.60 levels. On the previous day, the stock hit below its multiple support level of 200-201, but closed above 200 mark. The volumes are picking up and 14-period RSI has bounced back from the oversold zone. A breather or fresh buying is what is to be looked out for in the coming sessions.