The development was announced by the company after market hours on Monday. The arbitral tribunal passed the award on August 24, awarding Afcons a principal amount of ₹152.25 crore, along with pre-award and pendente lite interest of ₹183.25 crore, calculated at the State Bank of India (SBI) Base Rate with quarterly rests for the period from May 1, 2019, to August 24, 2026.
This takes the total award amount to ₹335.50 crore.
Interest makes up more than half of award
Of the ₹335.50 crore awarded to Afcons, ₹152.25 crore represents the principal amount, while ₹183.25 crore comprises pre-award and pendente lite interest.
The interest has been calculated at the SBI Base Rate with quarterly rests for the period from May 1, 2019, to August 24, 2026. As a result, the interest component accounts for more than half of the total award.
Afcons said the award will have a positive impact on the company’s financial position. The amount will be payable subject to UPEIDA not challenging the award within the stipulated period prescribed under law.
Second arbitration win in two months
The latest award comes less than two months after Afcons announced another arbitration win. On June 30, the company said it had received an award of ₹148.67 crore in connection with a tunnel project in Jammu and Kashmir.The dispute related to the construction of the remaining work on Tunnel T74-R on the Dharam-Qazigund section of the Udhampur-Srinagar-Baramulla Rail Link (USBRL) project. The tribunal also directed the release of a bank guarantee linked to the project.
Stock performance
The stock climbed to an intraday high of ₹290.90 on Tuesday and was trading 2.62% higher at ₹285.95 as of 12.29 pm. The stock’s gains on Tuesday have also broken its two-day losing streak.Shares of the company have fallen more than 27% this year, so far and about 34% over the last 12 months.
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