IRB Infrastructure Shares Gain After Kota Bypass Contract Win

Shares of IRB Infrastructure Developers Ltd. hit all-time high on Monday after it received a letter of award for the Kota Bypass and Cable Stay Bridge.

The National Highway Authority of India issued a letter of award to IRB Infrastructure Trust for tolling, operating, maintenance and transfer of Kota Bypass and Cable Stay Bridge on NH-76 and Gwalior-Jhansi section on NH-44, for an upfront consideration of Rs 1,683 crore, an exchange filing said.

"Receiving LoA is next important step on way to signing Concession Agreement, which will enable us to proceed to comply with various other formalities, including financial closure for the project that will facilitate timely takeover of the project," said Virendra D. Mhaiskar, chairman and managing director of IRB Infrastructure.

Shares of IRB Infrastructure rose as much as 6.62% intraday. They pared gains to trade 2.55% higher at 11:37 a.m., compared to a 0.08% advance in the NSE Nifty 50.

The stock has risen 48.7% year-to-date. Total traded volume so far in the day stood at 2.2 times its 30-day average. The relative strength index was at 75, implying that the stock may be overbought.

Of the nine analysts tracking the company, six maintain a 'buy' rating and three recommend 'hold', according to Bloomberg data. The consensus 12-month price target implies an upside of 40.9%.