Penny stock under Rs 15: Stock surges by more than 16 per cent after getting two new contracts worth more than USD 130 million in total!

On Wednesday, shares of the company surged by more than 16 per cent and made an intraday high of Rs 12.02.

MEP Infrastructure Developers Ltd is involved in the construction, operation, and maintenance of road infrastructure within India, with a specific emphasis on serving both Central and State Road authorities.

Victory Infra LLC, a wholly owned subsidiary of MEP Infrastructure Developers Limited (MEPIDL), has entered into a definitive Head of Terms (HOT) with Yellowstone DRC SARL (YDS) for an Engineering, Procurement, and Construction (EPC) contract. The contract pertains to the construction of the Kasumbalesa Dry Port in the Democratic Republic of Congo (DRC). The transaction is not considered a related party transaction and is conducted at an arm's length. The contract execution period is 24 months from the appointed date, and the estimated contract price ranges between USD 115 million and USD 130 million.

Victory Infra LLC has also entered into a definitive Head of Terms (HOT) with Yellowstone DRC SARL (YDS) for an Operation, Maintenance, and Management (O&M) contract. The contract pertains to the Kasumbalesa Dry Port in the Democratic Republic of Congo (DRC), with Victory Infra LLC being identified as the preferred contractor for operating, maintaining, and managing the port. The O&M contract will be for a duration of 12 years from the Commercial Operation date, with a potential extension of 6 years at the option of Yellow Stone. The estimated O&M contract fees range between USD 14 million and USD 18 million per annum, with a yearly escalation of 5 per cent.

On Wednesday, shares of the company surged by more than 16 per cent and made an intraday high of Rs 12.02.

Investors should keep a close eye on this buzzing stock.