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Shares of Ceigall India Ltd. gained on Wednesday, June 10, after the company's special purpose vehicle (SPV), Ceigall Ambala Chandigarh Zirakpur Ltd., executed a concession agreement with the National Highways Authority of India (NHAI) for a highway project in Punjab. The stock gave up those gains soon after
In an exchange filing, the company said the concession agreement was signed on June 9 for the construction of a six-lane access-controlled spur connectivity road linking the Ambala-Chandigarh section of NH-205A with the Zirakpur Bypass.
The project will be executed under the Hybrid Annuity Mode (HAM) and has an estimated project cost of ₹603 crore, excluding GST.
Also read: HUL rises 3% as JPMorgan sees premiumisation, rural demand driving growth
The proposed corridor will span 10.3 kilometres and is aimed at improving connectivity between the Ambala-Chandigarh highway stretch and Zirakpur, a key transit hub on the Punjab-Haryana border.
According to the company, the project carries an 18-month construction period, followed by a 15-year operation and maintenance period.
Ceigall India had earlier informed exchanges that it had received the letter of acceptance for the project. The execution of the concession agreement marks the next step toward the commencement of construction activities.
The project adds to Ceigall India's road infrastructure order book and strengthens its presence in the highway development segment, where it executes projects through engineering, procurement and construction (EPC) as well as HAM models.
In an interaction with CNBC-TV18 earlier this week, Ramneek Sehgal of Ceigall India said that the debt-to-equity ratio of the company is likely to decline to 0.49x from 0.6x earlier after the completion of the fund raise.
The company also has a strong order book over the next two to three years and Sehgal believes that for financial year 2027, the company's revenue will grow by 15% from last year, while margins will remain at similar levels to financial year 2026.
Sehgal went on to add that they are conservative currently going into the international markets and that the finalization of contracts is delayed given the geopolitical tensions.
Shares of Ceigall India are trading little changed on Wednesday after the brief spike seen after the announcement at ₹366.6. The stock is up 35% so far this year.
In an exchange filing, the company said the concession agreement was signed on June 9 for the construction of a six-lane access-controlled spur connectivity road linking the Ambala-Chandigarh section of NH-205A with the Zirakpur Bypass.
The project will be executed under the Hybrid Annuity Mode (HAM) and has an estimated project cost of ₹603 crore, excluding GST.
Also read: HUL rises 3% as JPMorgan sees premiumisation, rural demand driving growth
The proposed corridor will span 10.3 kilometres and is aimed at improving connectivity between the Ambala-Chandigarh highway stretch and Zirakpur, a key transit hub on the Punjab-Haryana border.
According to the company, the project carries an 18-month construction period, followed by a 15-year operation and maintenance period.
Ceigall India had earlier informed exchanges that it had received the letter of acceptance for the project. The execution of the concession agreement marks the next step toward the commencement of construction activities.
The project adds to Ceigall India's road infrastructure order book and strengthens its presence in the highway development segment, where it executes projects through engineering, procurement and construction (EPC) as well as HAM models.
In an interaction with CNBC-TV18 earlier this week, Ramneek Sehgal of Ceigall India said that the debt-to-equity ratio of the company is likely to decline to 0.49x from 0.6x earlier after the completion of the fund raise.
The company also has a strong order book over the next two to three years and Sehgal believes that for financial year 2027, the company's revenue will grow by 15% from last year, while margins will remain at similar levels to financial year 2026.
Sehgal went on to add that they are conservative currently going into the international markets and that the finalization of contracts is delayed given the geopolitical tensions.
Shares of Ceigall India are trading little changed on Wednesday after the brief spike seen after the announcement at ₹366.6. The stock is up 35% so far this year.
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