Welspun Enterprises Limited receives provisional commercial operation date for HAM project

Welspun Enterprises Limited has announced about the receipt of a letter dated September 1, 2021 from the National Highways Authority of India ("NHAI") declaring Provisional Commercial Operation Date ("PCOD") w.e.f. August 25, 2021 in respect of the Hybrid Annuity Model ("HAM") project 'Four laning of Chikhali - Tarsod (Package-IIA) section of NH-6 from km. 360.000 to km. 422.700 in the State of Maharashtra'. With this event, the Company is entitled to receive annuity, interest and O&M payments from NHAI every six months in accordance with the provisions of the Concession Agreement.

This is the fourth NHAI HAM project completed by the Company, with a completion cost of approximately Rs. 1,240 crore (with escalation). The other completed projects are Delhi - Meerut Expressway Package 1 (completion cost of Rs 896 crore), Chutmalpur - Roorkee - Gagalheri (completion cost of Rs 1,108 crore) and Gagalheri - Saharanpur - Yamunanagar (completion cost of Rs 1,388 crore). Thus out of the Company's total roads HAM portfolio of 7 projects of around Rs 9,800 crore, 4 projects of Rs 4,600 crore have achieved PCOD/COD.

Further, the agreement with Soma Indus Varanasi Aurangabad Tollway Private Limited w.r.t. undertaking the procurement and construction for six-laning of Varanasi - Aurangabad section of NH-2 from km 786.000 to km 978.000 in the states of Uttar Pradesh & Bihar, has come into effect, subject to compliance of certain conditions precedent thereunder. The contract value for the Company is Rs. 2,336 crore (inclusive of GST) and the construction is to be completed in 24 months. With this project the Company's EPC order book is Rs 8,105 crore (excluding work executed from June 30, 2021).

Shares of Welspun Enterprises Limited was last trading in BSE at Rs. 97 as compared to the previous close of Rs. 98.25. The total number of shares traded during the day was 3717 in over 262 trades.

The stock hit an intraday high of Rs. 99.9 and intraday low of 96.2. The net turnover during the day was Rs. 363819.

Source : Equity Bulls

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