PPFAS Mutual Fund to decide on valuing its holding in Noida Toll Bridge Co.

Chennai/Mumbai, Oct 27 (IANS) The PPFAS Mutual Fund will on Friday decide on the valuation of its investment in Noida Toll Bridge Company Ltd that has been barred by the Allahabad High Court from collecting toll from the road users, the mutual fund has informed its investors.

In a communication to the investors in its Parag Parikh Long Term Value Fund, PPFAS Mutual Fund said around 2.77 per cent of the fund assets are invested in Noida Toll Bridge Company Ltd.

"The valuation committee will decide on the valuation of the stock and its effect on the NAV tomorrow by taking into consideration the additional information that will be available in public domain," PPFAS Mutual Fund told its investors on Thursday.

The Parag Parik Long Term Value Fund holds 87,48,218 shares in Noida Toll Bridge which is 4.70 per cent of the voting rights, as per the company’s latest filing in the BSE.

On October 26, the Allahabad High Court ordered that vehicles plying on the Delhi-Noida-Direct flyway that toll should not be collected from the vehicles plying on the nine km stretch.

The court also observed that the toll tax being levied on vehicles was illegal and ordered the state government to ensure that it was not levied any further.

A petition was filed before the division bench by the Federation of Noida Residents Welfare Associations, which had sought cancellation of the contract between the Noida Authority and the company running the toll.

Central government owned Life Insurance Corporation of India and General Insurance Corporation holds 2.42 per cent and 1.07 per cent, as per Noida Toll Bridge’s latest share holding pattern filing in the BSE.

The Noida Toll Bridge has said that it will go on appeal in the Supreme Court against the High Court’s order.

Meanwhile the stock of Noida Toll Bridge plunged at the bourses.

The company’s scrip fell by almost 20 per cent to touch its lower circuit breaker limit during the early morning trade session.

At the BSE, stock declined by 19.96 per cent to Rs 17.85.

The company was formed as a special purpose vehicle (SPV) with equity participation from Infrastructure Leasing and Financial Services (IL&FS) Transportation Networks and NOIDA (New Okhla Industrial Development Authority).

The company is also the only listed toll road in the country. It is listed on both the major domestic indices as well as the AIM exchange, London.

The scrip of IL&FS Transportation Networks, slipped by 1.54 per cent at Rs 111.60.