Why This Vijay Kedia-Backed Multibagger Small Cap Stock Is Up 5% Today

Patel Engineering, the engineering and construction company, saw its shares rocket early Monday after the company disclosed to exchanges that it has received a favourable Partial Final Award from an international Arbitral Tribunal.

What Happened? The award relates to the wrongful termination and expropriation of a land lease in Mauritius, concerning one of its subsidiaries.

The Tribunal awarded Patel Engineering MUR 1.35 billion (equivalent to $40.23 million as of February 2015), along with additional interest at PLIBOR + 2% until the payment. The Tribunal will announce the decision on the Award on Costs soon.

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The company’s entitlement to the awarded sum is subject to potential challenges and enforcement proceedings. After deducting the costs involved in funding the arbitration and court proceedings, Patel Engineering will receive the remaining amount. This award marks a significant financial gain for the company, highlighting its successful navigation through international arbitration in a complex legal dispute.

Price Action: Patel Engineering Ltd. shares were trading 4.9% higher at ₹63.10 on Monday after opening at ₹61.70.

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