G R Infraprojects shares zoom 11% as NHAI awards ₹4,263 crore Agra-Gwalior highway contract

Shares of G R Infraprojects surged 11% in early trade on Wednesday, March 19, to ₹1,042 after the company secured a large order from NHAI to build and upgrade the Agra-Gwalior highway.

In an exchange filing on Tuesday, the company announced that it had received a Letter of Acceptance (LoA) from the National Highways Authority of India (Ministry of Road Transport & Highways) for the construction of the Agra-Gwalior Greenfield Road, valued at ₹4,262.78 crore.

The project involves the development of a six-lane access-controlled Agra-Gwalior Greenfield highway, starting from design km 0+000 near Deori village in Agra district to design km 88+400 near Susera village in Gwalior district, covering parts of Uttar Pradesh, Rajasthan, and Madhya Pradesh.

Additionally, it includes the overlay, strengthening, and safety enhancements on the existing Agra-Gwalior section of NH-44, spanning from km 1058.00 to 1148.00 (design chainage 13.00 to 103.00) across the same three states. The project will be executed under the DBFOT (Design, Build, Finance, Operate, and Transfer) model as part of the NH(O) scheme, with operations carried out on a BOT (Toll) basis, as per the company's exchange filing.

Meanwhile, in late February, the Government of Assam entered into a Memorandum of Understanding (MoU) with the company for the development of a ropeway from Sonaram Field to Bhubaneshwari Temple, Kamakhya, in Guwahati, Assam. The proposed investment in the project is ₹270 crore. Further, in January, it emerged as the lowest bidder for a 38.9-kilometer rail project valued at ₹262.28 crore.

Stock price history

GR Infraprojects shares have witnessed a severe beating on Dalal Street over the last six months, causing them to lose 43.50% of their value. This decline followed a sharp rally between November 2023 and July 2024, during which the stock gained 80% and reached a new all-time high of ₹1,860 apiece.

The company is involved in the construction and maintenance of roads, bridges, highways, and various civil infrastructure projects. It holds a significant presence in northern and central India, with recent expansions into the western and southern regions.

The company has diversified its project models, notably adopting the engineering, procurement, and construction (EPC) model and the build, operate, and transfer (BOT) model, giving it a competitive advantage.

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