Shares of Olectra Greentech have surged sharply and are trading with gains of up to 3% in trade on Monday after bagging a huge order win from the Telangana government. The stock is currently trading at Rs 1,049, accounting for gains of around 3.5% compared to the last closing price of Rs 1,014.
The sudden surge in Olectra Greentech shares can be attributed to a fresh order win amounting to Rs 1,800 crore. The order comes from Telangana Road Transport Corporation (TGSRTC) and was received by Evey Trans Private Ltd. through two separate letters of award.
The order comprises the supply, operation and maintenance of 1,085 electric buses, 1,025 of which are 12-meter non-AC buses, while 60 of them are AC buses. The buses will be used for intra-city operations in the state of Telangana.
These orders for the supply of 1,085 electric Buses are on a Gross Cost Contract (GCC) / OPEX model basis for a period of 12 years, the company confirmed in an exchange filing on Monday. The buses will be delivered over a period of 20 months.
Olectra further confirmed that the proposed transactions between Olectra and Evey will fall under the category of related-party transactions and will be conducted on an arm 's-length basis.
Olectra Green's recent order win has certainly left investors impressed, with the stock running up since the announcement.
Currently trading with a relative strength index of 32, which suggests a neutral market sentiment, shares of Olectra Greentech have delivered in the last 12-months.
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