HG Infra Falls 3% After Rs 4,142 Cr MSRDC Projects Exit Order Book

Shares of HG Infra Engineering Limited fell 3% on 21 May, touching a day low of Rs 572.50 on the NSE, after the company said it would no longer consider two Maharashtra expressway projects worth Rs 4,142 crore as part of its executable order book pending clarity from MSRDC.

The trigger was unusual. Maharashtra State Road Development Corporation (MSRDC) returned the bank guarantees HG Infra had submitted as bid security for both projects without offering any explanation. 

The company’s exchange disclosure described it as coming ‘to the surprise of the company’. HG Infra told exchanges it has since sought clarity from MSRDC. No response has come.

Faced with that silence, the Jaipur-based infrastructure firm decided to stop treating the two projects as part of its active order pipeline until MSRDC communicates further.

The two contracts are EPC packages for the Nagpur-Chandrapur Access Controlled Super Communication Expressway. Package NC-04 covers a 28.20 km stretch from Chargaon to Nandgaon Kh in Chandrapur district, with HG Infra’s bid value at Rs 1,991.11 crore. 

Package NC-05 runs 31.75 km from Nandgaon Kh to Jogapur in the same district, carrying a bid value of Rs 2,151.11 crore. Together, they account for Rs 4,142.22 crore.

HG Infra had originally been declared the lowest bidder (L1) for both packages by MSRDC on 21 May 2024. Nearly one year after that declaration, the authority returned the guarantees without explanation.

The company’s order book stood at Rs 13,625 crore at the end of the December quarter. March quarter numbers are not yet out. With these projects stripped out, the active pipeline drops to roughly Rs 9,483 crore.

At 10:15 am on 21 May, the stock is trading at Rs 580.55, down 2.39% on the NSE. The stock has remained under pressure this year and is down sharply over the past 12 months.

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