The Hindu Business Line : PBA Infra active on order buzz

PBA Infrastructure, a Mumbai-based road construction company, has been active for the past one week on the market buzz suggesting that it has bagged road construction order in Uttar Pradesh worth Rs 300 crore.

There has been no official announcement on new orders after March this year. A company official told Business Line that the company made appropriate disclosures to the stock exchanges when there was a development for reporting.

Between January and March this year, the company made three announcements regarding fresh award of contracts – all in greater Mumbai and Maharashtra – worth a total of around Rs 97 crore. In November 2006, it informed that its 49:51 joint venture with a partner was awarded a BOT road project worth Rs 297 crore involving four-laning of Aurangabad – Jalna Road (MSH-6). The concession period of the World Bank-aided project is 23 years and six months.

After the announcement, the stock had touched its 52-week high at Rs 157 on November 30, 2006. In the past two days, the stock has shed some value. But despite this, its weekly gain at Wednesday’s closing of Rs 99 is still over 17 per cent. Wednesday’s traded quantity on the NSE was 71,613 shares, while on the BSE 50,007 shares changed hands.

In June this year, the company, having Rs 13.5 crore equity base, deferred indefinitely a proposed preferential issue of share warrants. In the quarter to September 30, 2007, it reported an EPS of Rs 3.74 and the annual EPS to March 31, 2007 was Rs 8.08.

Jayanta Mallick

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