Remarkable 20% surge in shares of GMR Power and Urban Infra following major order win!

The Indian headline indices experienced a reversal of early-session gains, primarily driven by declines in the fast-moving consumer goods and banking sectors. However, amidst this weak market environment, BSE Metals stood out by demonstrating remarkable resilience, with an impressive surge of around 3%. Notably, the broader indices outperformed the main indices significantly.

GMR Power and Urban Infra Ltd, which emerged as the top gainer in the BSE Smallcap index, managed to capture the attention of small-cap investors, providing a ray of optimism within the context of an otherwise subdued market. On an intraday basis on Monday, the shares of GMR Power and Urban Infra Ltd experienced a significant surge, hitting the upper circuit limit of 20% and achieving a 52-week high at Rs 34.24 per share on the BSE.

The stock garnered substantial buying interest, primarily driven by optimism stemming from the company’s announcement regarding a substantial order. The company disclosed that its subsidiary, GMR Smart Electricity Distribution Private Limited (GSEDPL), has secured a Letter of Award from Purvanchal Vidyut Vitran Nigam Limited. This award pertains to the implementation of a smart metering project covering the Purvanchal region, encompassing Varanasi, Azamgarh zone, and Prayagraj, Mirzapur zone, within the state of Uttar Pradesh.

GSEDPL will undertake the installation, integration, and maintenance of an impressive 50.17 lakh smart meters in this designated area. Furthermore, the company provided details on the total contract values, indicating that the contract for the Prayagraj and Mirzapur Zone amounts to Rs 2,386.72 crore, while the Varanasi and Azamgarh Zone contract is valued at Rs 2,736.65 crore. The project will be executed under Revamped Distribution Sector Scheme (RDSS) and is expected to reduce the AT&C losses in the designated area and improve the operational and collection efficiency of UP Discoms.

Keep a close eye on this stock for the upcoming sessions!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.