Shares of Power Grid Corporation of India rose more than 1% on March 6 after the company announced it was the winning bidder in a competitive electricity price-based bid for two projects.
The aim is to establish an interstate transmission system for both projects on a Build, Own and Transfer (BOOT) basis.
Shares of the company were up 1.4% at Rs 225.10 on the BSE at 9:33 am.
One of the projects will include establishing a 400 KV direct current transmission line across Chhattisgarh and Bays extension works at two existing substations. In contrast, the company said the other project would consist of Bays extension works, including creating 220KV voltage at two existing substations. The station is in Chhattisgarh state, the filing said.
Given the influx of news and recent orders won, power grids have been in the spotlight lately. Last week, the company was announced as the successful bidder in a tariff-based competitive tender for the Gujarat state to build an interstate transmission system project.
In late February, Power Grid’s board approved investments of over Rs 803 crore for various transmission projects in India, which could lead to higher revenues for the company.
Listed in 2007, the company has three business segments: power transmission, telecommunications and consulting, of which power transmission is the main business.
With the transmission sector expected to continue growing, the grid is poised to leverage its robust project pipeline and ongoing capital expenditures on solar generation and distribution infrastructure, Geojit Research said. In the short term, however, the brokerage remains cautious about input price volatility and expects profitability to be impacted.