Bondada Engineering Ltd. shares rose more than 3% on Monday after the company said it had secured an engineering, procurement and construction (EPC) contract from NTPC Renewable Energy Ltd. for a battery energy storage project at Gujarat's Khavda Solar Park.
The stock was trading at Rs 301.95 on the BSE SME platform at around 1:40 p.m., up from its previous close of Rs 290.40.
The order adds to Bondada Engineering's order book and comes as India plans to expand battery energy storage capacity over the coming years.
The contract covers the engineering, procurement and construction of a 100-MWh Vanadium Redox Flow Battery (VRFB) energy storage system at the Khavda Solar Park. Delectrik Systems Pvt. Ltd. will serve as the technology partner. The project also includes 10 years of operations and maintenance and is scheduled for completion within 10 months from receipt of the Notification of Award.
In its exchange filing, the company said the project is India's first and largest grid-scale VRFB battery energy storage project.
"With this landmark order, Bondada Engineering has secured India's first and largest grid-scale Vanadium Redox Flow Battery (VRFB) BESS project, demonstrating the Company's ability to adopt and execute energy storage projects involving advanced Long Duration Energy Storage (LDES) technologies," the company said in the filing.
Bondada Engineering said the project strengthens its presence in the battery energy storage systems segment and expands its renewable energy EPC portfolio.
The company said VRFB technology offers an operational life of more than 25 years, along with high safety, stable performance during frequent cycling, limited degradation and lower operating costs than lithium iron phosphate (LFP) battery systems.
"The project is strategically significant as it involves Vanadium Redox Flow Battery (VRFB) technology, a next-generation energy storage solution that offers several advantages over conventional Lithium Iron Phosphate (LFP) battery systems," the company said.
The company also said India's domestic vanadium resources could reduce dependence on imports and support the country's energy security goals.
According to Bondada Engineering, the government has set a target of deploying about 236 GWh of battery energy storage capacity by 2030, compared with an installed capacity of about 3.3 GWh.
Shares of Bondada Engineering have traded between Rs 215 and Rs 503 over the past 52 weeks. The stock is currently valued at a price-to-earnings multiple of 18.1 times. The company's market capitalisation stood at Rs 3,337.9 crore at the close of the previous trading session.
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