Gayatri Projects wins Rs. 914 crore arbitration claims

Gayatri Projects (GPL) in its exchange filing said that the company along with its joint venture partner IL&FS Engineering & Construction has won an arbitration claim of worth Rs. 914.3 crore for the Nagaland project. The proceeds from the award will be distributed in proportion to the work done by each partner and payment will be released on completion of the court process.

The said arbitration award will accrue an interest of 12 per cent per annum till realisation of the payment is done. On finalisation of the award claims, bank guarantees by the JV partners, worth Rs. 240 crore will also be released.

The company further mentioned about its balance sheet deleveraging plan from monetising its arbitration awards and claims. Gayatri Project and its JVs have been awarded arbitrage of around Rs. 600 crore from various arbitrators/courts and have a claims outstanding of more than Rs. 400 crore.

On Tuesday, the stock of Gayatri Project was trading in the positive terrain. The stock which opened at Rs. 136.25 per share touched an intra-day high of Rs. 141 apiece but later it cooled down and settled for the day at Rs. 132.4, down by 1.4 per cent.