HG Infra Engineering snags Rs 781cr deal for NH 47! Stock prices surge – Here’s what you need to know

HG Infra Engineering Limited has won a significant contract worth Rs 781.11 crore from the Ministry of Road Transport and Highways of India (MoRTH) to upgrade a 10.63 km stretch of National Highway 47 (NH-47) between Narol Junction and Sarkhej Junction in Gujarat. The project will involve the upgradation of an existing six-lane road and construction of an elevated corridor under the Hybrid Annuity Mode (HAM). The project is expected to be completed within 2.5 years.

Key Details of the Project

The NH-47 upgrade project will focus on improving traffic flow and reducing congestion along the busy corridor between Narol and Sarkhej junctions. This stretch of road is a critical link in Gujarat’s road network, facilitating the movement of goods and passengers. HG Infra Engineering emerged as the lowest bidder (L1) for this project, outbidding competitors with a final bid of Rs 781.11 crore against the MoRTH’s estimated cost of Rs 883.24 crore. The project will be executed on the Hybrid Annuity Model (HAM), a public-private partnership that combines a fixed payment schedule with a revenue-sharing arrangement.

Impact on HG Infra’s Market Performance

Following the announcement of the contract win, HG Infra’s stock performance showed notable activity. The company’s shares opened at Rs 1,476.15, peaked at Rs 1,485.05, and closed at Rs 1,460.00 on the day of the announcement. This contract win is expected to bolster HG Infra’s order book and enhance its reputation in the infrastructure sector, which has seen growing government focus on road development projects.

Strategic Importance of the Contract

The NH-47 upgrade is strategically important for both the region and HG Infra Engineering. For the state of Gujarat, the project is expected to improve connectivity, reduce travel time, and enhance safety for commuters. For HG Infra, the contract aligns with its strategy to expand its presence in major infrastructure projects across India. The company has previously undertaken several projects under the Hybrid Annuity Model, which balances risk between the government and the private contractor.

Execution and Future Outlook

HG Infra is tasked with completing this project within 2.5 years, indicating a robust timeline for construction and implementation. With this contract, HG Infra continues to strengthen its portfolio of highway projects and looks to leverage its expertise in the infrastructure sector to drive future growth. The company’s focus on maintaining quality standards and timely project execution is likely to play a crucial role in securing more contracts in the road and highway construction domain.

HG Infra Engineering’s Rs 781 crore contract for upgrading NH-47 in Gujarat marks another milestone for the company. It highlights its competitive edge in the infrastructure sector and underscores the government’s ongoing push to modernize India’s highway network. As the project moves forward, HG Infra’s performance and strategic execution will be closely watched by industry stakeholders and investors alike.