Shares of HG Infra Engineering remained in focus, soaring 5% on Wednesday after the company received a Letter of Award for a Rs 241 crore project from the Rajasthan government. 

The contract is related to the operation and management of an ITI cluster under the government’s PM-SETU skill development programme. The project will be executed under the Public-Private Partnership (PPP) model, with HG Infra holding a 17.10% stake as the Anchor Industry Partner. The estimated project cost is Rs 241 crore, and the agreement has an operation and management period of 10 years.

PM-SETU is aimed at upgrading Industrial Training Institutes and improving vocational education and employment opportunities. For HG Infra, the project is notable because it takes the company beyond its traditional road and infrastructure activities and gives it exposure to the skill development sector.

The new order also adds to HG Infra’s sizeable business pipeline. Its disclosed order backlog stood at around Rs 12,278.52 crore after the latest award, providing visibility for future activity. The company has also been working to diversify its business into areas such as railways, solar power and battery storage.

The development comes shortly after HG Infra announced an investment of Rs 33.80 crore in its battery energy storage subsidiary, showing its broader effort to build businesses beyond conventional road construction.

Investors will now watch the execution of the Rajasthan project and the company’s upcoming financial results. HG Infra’s board was scheduled to consider its June quarter results on August 12.

At 1:20 pm, the shares of HG Infra were trading 2.36% higher at Rs 560.75 on NSE. 

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