HG Infra Stock Ends Higher on Rajasthan ITI Order Win

Shares of HG Infra surged on NSE on Monday after the company was declared L1 bidder for a Rajasthan government project.

The Department of Skill, Employment and Entrepreneurship, Government of Rajasthan, named HG Infra as the L1 bidder for a project to upgrade Industrial Training Institutes in the Bhiwadi cluster.

ITIs are government run centres that train students in trade skills, and the scheme is meant to bring their infrastructure and courses closer to what industry actually needs.

The project is worth Rs 241 crore and will run under a public private partnership model, where the government works with a private company to build and manage the infrastructure.

The concession period is 10 years. One report pegs HG Infra’s actual take as a 17.10% share of that estimated project cost, rather than a flat contract value.

The company said the award came from a domestic government body and does not involve any related party transaction. There has been other movement too.

On May 26, HG Infra said it had qualified as a bidder for a power transmission project in Uttar Pradesh, covering new substations at Ranipur and Chunar along with the associated transmission lines.

Separately in May, the company dropped two Maharashtra road projects from its executable order book, citing uncertainty over how they would actually be executed.

L1 bidder status is not the same as a signed contract though. The award usually becomes final only after the company clears the government’s technical and procedural checks, so this is still an early stage development.

HG Infra’s business has moved well past just roads and highways at this point, with power transmission, railways and social infrastructure work now forming a bigger part of its order book.

By close, the stock settled at Rs 568.05 on the NSE, up 0.78% for the day.

Feeling overwhelmed by the markets? Let Tradz by EquityPandit be your guide. Our user-friendly app simplifies complex data and provides actionable trading signals. Download the app today and trade with confidence!

The post HG Infra Stock Ends Higher on Rajasthan ITI Order Win appeared first on Equitypandit.