Patel Engineering hits upper circuit

Dalal Street is buzzing on Sept 2, with Sensex up by 51 points and Nifty by 7 points as at 10.20 am. On the other hand, Welspun the most deprived stock of Aug, has today hit upper circuit, and on similar lines Patel Engineering too has hit the upper level on Sep 2.

The scrip of the company, which previously closed at Rs 53.75, opened at Rs 64.50, up by 20 per cent. On September 1, company informed the bourses that it has won arbitration awards in excess of Rs 2500 crores. With this decision, company will get 75 per cent of this amount immediately, which the company will further utilise to retire is debt. The total debt of the company as on March 31, 2016 is Rs 4535 crores approximately. According to the company's management, cabinet’s decision on payment of arbitration awards to the construction company will help the company to infuse liquidity into the stressed entity and will help create more jobs. Company is assured that the debt of the company in the next 12-18 months will be reduced by 55 to 60 per cent.

Patel Engineering is an integrated construction company specialising in hydropower generation, irrigation and urban infrastructure projects. It is the only Indian company with experience in RCC, Micro Tunnelling and Double Take Tap Work.