RPP Infra forays into Gujarat; stock jumps

RPP Infra Projects has won new orders worth Rs. 72.2 crore through a Joint Venture in which it would be having 40 per cent share. With this order, company has announced its foray into a new geographic location, Gujarat.

The company received an order worth Rs. 40.5 crore from the Gujarat Water Supply & Sewage Board for package 6 of the Samarsingi cluster. This project is expected to be completed within 24 months.

Further, the company has also received a Letter of Intent (LoI) for an order worth Rs. 31.7 crore from Gujarat Water Supply & Sewage Board for package 7 of the Tanachhiya cluster. This project too is expected to be completed within 24 months.

With an effort to reduce dependence of the company on only one state, RRP Infra has grabbed this opportunity to foray in another state, i.e., Gujarat. Its current presence is restricted in the two states of Maharashtra and Madhya Pradesh.

Shareholders are looking forward to company’s December quarter results which the Board of Directors would consider and approve on February 14, 2019.

In the past one week, from last Wednesday, the stock of RPP Infra plunged by ~22 per cent despite the company winning continuous orders. On Tuesday, it closed at Rs. 92.35 per share. On Wednesday, it opened at Rs. 91.30 and jumped up by 13.7 per cent to make intra-day high of Rs. 105 per share.