Gammon Infra breaches 20% UC

Yesterday, after market hours, Gammon Infra announced that Indira Container Terminal (‘ICTPL'), one of the joint venture SPV of the company, has accepted the Mumbai Port Trust (MbPT) proposal for alternative use of the Offshore Container Terminal for Roll-on/Roll-off operations. This means, what was lying idle, earning no money can now be used for operations of providing facilities to the importers and exporters of automobiles and self propelled equipment, for a period of one year from the date of operation. This alternate use deal has been struck wherein Gammon will get a 45% revenue share and Mumbai Port will earn 55%.

Naturally, the stock price is reflecting the positive impact of this development on the company’s earnings – the stock breached the 20% upper circuit at Rs.12.82, with volumes up almost two times.