Shares of GMR Power and Urban Infra Ltd. jumped nearly 20% to hit a record high on Monday after its unit won a project from Purvanchal Vidyut Vitran Nigam Ltd.
The company's step-down subsidiary, GMR Smart Electricity Distribution Pvt., received a letter of award for the installation, integration, and maintenance of 50.17 lakh smart metres in Varanasi and Prayagraj, Uttar Pradesh, according to a Sept. 3 exchange filing.
The total contract value of the project is split as Rs 2,386.7 crore for Prayagraj, Mirzapur zone, and Rs 2,736.6 crore for Varanasi, Azamgarh zone. The implementation tenure is expected to be 27 months from the date of execution of the contract, with an operating period of 93 months, it said.
The company also expects a similar project from Dakshinanchal Vidyut Vitran Nigam Ltd., for the Agra and Aligarh zones, for 25.52 lakh smart metres.
Shares of GMR Power jumped 19.86%, before paring gains to trade 19.16% higher at 9:52 a.m. This compares to a 0.28% rise in the NSE Nifty 50. The stock has increased 47.94% year-to-date so far.
Total traded volume so far in the day stood at 38 times its 30-day average. The relative strength index was at 84, implying that the stock may be overbought.
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