Shares of Reliance Infrastructure surged as much as 6 per cent in intra-day trade on Tuesday after Anil Ambani-led company said it has received the Letter of Award (LOA) from the Airports Authority of India (AAI) of a contract worth Rs 648 crore for the construction of new greenfield Airport at Hirasar in Rajkot district of Gujarat.
The company, which is involved in power generation, infrastructure, construction and defence, had participated in the tender for engineering, procurement and construction (EPC) contract independently as a main contractor.
Buoyed by the development, shares of small-cap company gained as much as 6.30 per cent to touch an intra-day high of Rs 133.20 apiece on the Bombay Stock Exchange, after making a flat start at Rs 125.80 against a previous closing price of Rs 125.30.Stocks of the infrastructure company were trading at Rs 130.60, up 4.27 per cent, on the National Stock Exchange. The Scrip touched an intra-day high and low of Rs 133.25 and Rs 124.85, respectively.
"The scope of work includes detailed designing, engineering, procurement and construction of runway...... supply, installation, testing and commissioning of airfield ground lighting system, visual aids for navigation and bird hazard reduction," Reliance Infra said in a filing to the Bombay Stock Exchange.
Commenting on the development, Reliance Infrastructure E&C CEO Arun Gupta said, "Our strong credentials in infrastructure projects execution are borne out by the successful execution of large-scale transportation and power projects. The Hirasar airport project will further strengthen Reliance Infrastructure Limited's bona fide to be a leader in infrastructure projects."
Reliance Infrastructure had scored the highest technical score of 92.2 per cent among nine qualified bidders like Afcons and L&T. The airport is to be completed within 30 months from the date of issue of letter of award (LoA), the company stated in the exchange filing.
The new airport is being constructed at a location near the National Highway (NH-8B) connecting Ahmedabad and Rajkot, nearly 36 km from the existing Rajkot Airport. Over time, the proposed new airport will also meet the spillover needs of Ahmedabad, it added.
The holistic development of Hirasar airport will not only serve the demand generated by Rajkot city but also cater to the demand in the neighbouring states, the company said.
Edited by Chitranjan Kumar