Gayatri Projects Limited receives Rs. 208 crore arbitral award

Gayatri Projects Limited (:GPL" or the "Company') has successfully monetized and received INR 208 crore net of statutory deductions (Gross INR 219 crs) under the GOI scheme of monetisation of 'under litigation arbitral award' against bank guarantees. The company along with its JV partner had been awarded an arbitration claim wofth INR 703 crore including interests for its road project in Nagaland and GPL pottion in the same was INR 264 crore. The company has now received 75% of the claim (including further interest of INR 27.74 crs for the period from the date of award till the date of payment) after furnishing bank guarantees of similar amount. This inflow is in line with company's guidance of an inflow of INR 2-3 billion under the GOI award monetisation scheme / conciliation scheme.

As per GPL's stated strategy, this money will be used towards repayment of term loans. Post the use of these proceeds, GPL's long-term debt would reduce by 27% from INR 764 crore in H1FY21 to INR 556 crores. This is the first in a series of award monetization's company expects to receive under the various settlement schemes of GOI. The company remains committed towards balance sheet strengthening and reduction of long-term debt to a negligible amount.

Shares of GAYATRI PROJECTS LTD. was last trading in BSE at Rs.34.05 as compared to the previous close of Rs. 34.05. The total number of shares traded during the day was 234771 in over 1529 trades.

The stock hit an intraday high of Rs. 35.75 and intraday low of 32.35. The net turnover during the day was Rs. 8013595.

Source : Equity Bulls

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