GMR Infra gains on hydropower project pact with IFC in Nepal

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    GMR Group LogoGMR Infrastructure rose 1.52% to Rs 23.35 at 10:18 IST on BSE after the company said that GMR Energy has signed a joint development agreement with the International Finance Corporation for a hydropower project in Nepal.

    The announcement was made after market hours on Friday, 20 December 2013.

    Meanwhile, the S&P BSE Sensex was up 93.22 points or 0.44% at 21,172.94.

    On BSE, so far 4.27 lakh shares were traded in the counter as against average daily volume of 7.44 lakh shares in the past one quarter.

    The stock hit a high of Rs 23.65 and a low of Rs 23.05 so far during the day. The stock had hit a 52-week high of Rs 25 on 17 May 2013. The stock had hit a 52-week low of Rs 10.65 on 6 August 2013.

    The stock had underperformed the market over the past one month till 20 December 2013, surging 8.74% compared with the Sensex’s 2.15% rise. The scrip had also outperformed the market in past one quarter, jumping 25.33% as against Sensex’s 4.03% rise.

    The mid-cap company has equity capital of Rs 389.24 crore. Face value per share is Re 1.

    GMR Infrastructure (GMR) said that GMR Energy on Friday, 20 December 2013 signed a joint development agreement (JDA) with the International Finance Corporation (IFC), the private sector lending arm of the World Bank, to jointly develop the prestigious Upper Marsyangdi-2 hydropower project (600 MW) in Nepal.

    The 600 MW Upper Marsyangdi-2 Project is located on the Marsyangdi River, in the Manang and Lamjung districts of Nepal, which is in an advanced stage of development. The project is currently being undertaken by Mis Himtal Hydro Power Company, a subsidiary of GMR Energy, which in turn is a subsidiary of GMR Infrastructure.

    The Government of Nepal has identified the proposed Upper Marsyangdi-II as one of the National Priority Projects and it is being facilitated by the Investment Board of Nepal (IBN). The project has completed all survey and investigation works, finalized the feasibility studies and has already received a majority of clearances from the Government of Nepal. The Project Development Agreement is expected to be signed early next year, GMR said in a statement.

    The project aims at a total investment of around $1 billion and is targeted for commissioning by FY 2021.

    GMR Infrastructure reported a consolidated net loss of Rs 393.05 crore in Q2 September 2013, higher than net loss of Rs 179.30 crore in Q2 September 2012. Net sales rose 1.1% to Rs 2397.21 crore in Q2 September 2013 over Q2 September 2012.

    GMR Infrastructure is a global infrastructure major with interests in airports, energy, highways and urban infrastructure sectors.

    Source : Business Standard