Power Grid Share Price Surged 4% on Transmission Project Wins

Tanushree Jaiswal Tanushree Jaiswal 18th April 2024 - 04:29 pm
Listen icon

Power Grid share price rallied to 5% up from 4% on Monday, to ₹289.10 on the BSE in Thursday’s intra-day trade after it has been declared as the successful bidder under tariff based competitive bidding (TBCB) to establish inter-state transmission systems on build, own operate and transfer (BOOT) basis. Power Grid share price had hit a 52-week high of ₹298.95 on March 7, 2024. At this price, the scrip has gained 19.58 per cent in 2024 so far and 64.63 per cent in the past one year.

The first project is the transmission system for the evacuation of power from Rajasthan (Jaisalmer/Barmer Complex). They will handle evacuating power from specific areas in these regions. They have also received Letters of Intent for similar projects in the same regions. Additionally, on April 10, the company informed that the project under transmission system for evacuation of power from 2X500MW Neyveli Lignite Corp. Ltd TS-1 (Replacement) (NNTPS) in Neyveli, Tamil Nadu has been commissioned with effect from February 10, 2024.

Meanwhile, Power Grid, the state-owned power transmission company on Wednesday, approved a proposal to raise up to ₹12,000 through the issuance of bonds in one or more tranches in 2024-25. "Committee of Directors for Bonds in their meeting held on April 17, 2024 has approved the raising of Bonds as Unsecured, Non-convertible, Non-cumulative, Redeemable, Taxable Power Grid Bonds Issue(s) during FY 2024-25 in one or more tranches/series up to ₹12,000 crore," it said.

"Power Grid could be a good play on the transmission sector. The margin of security in significantly higher at current levels," Vinit Bolinjkar, Head of Research at Ventura Securities, told Business Today TV. Analysts largely suggested positive views on the counter.

Power Grid Corporation securing these three transmission projects through competitive bidding underscores its prowess in the energy sector and its commitment to enhancing India’s power infrastructure. By winning these projects, Power Grid reaffirms its position as a key player in the transmission segment.

How do you rate this article?

Characters remaining (1500)

Disclaimer: Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

Get 100 trades FREE* with the code "FREEPACK"
Resend OTP
Please Enter OTP
By proceeding, you agree T&C*
Mobile No. belongs to

Indian Market Related Articles

Tata Steel Stock Tumbles 5% Af...

by Tanushree Jaiswal 30/05/2024

Aimtron Electronics IPO Subscr...

by Tanushree Jaiswal 30/05/2024

HDFC Life, LIC, Other Insuranc...

by Tanushree Jaiswal 30/05/2024

Sun Pharma Shares Decline

by Tanushree Jaiswal 30/05/2024

Brokerages slashes Alkem Labs'...

by Tanushree Jaiswal 30/05/2024