Shares of Bharat Heavy Electricals Limited (BHEL) and Adani Power surged up to 13% in opening trade on Thursday after they entered into thermal power project deals. While shares of state-owned BHEL surged nearly 13% upper circuit limit, Adani group stock jumped as much as 8%.
BHEL has secured two orders worth ₹7,000 crore from Adani Power Ltd (APL), the power arm of Adani Group, to set up thermal power plants in Raipur (Chhattisgarh) and Mirzapur (Uttar Pradesh).
"Bharat Heavy Electricals Limited (BHEL) has received an order from Adani Power Ltd. (APL) for setting up the 2x800 MW TPP at Raipur, Chhattisgarh," as per the exchange filing. The value of this contract is ₹3,500 crore.
In a separate release, BHEL said that it has received an order worth ₹3,500 crore from Mirzapur Thermal Energy (UP) Private Limited, a subsidiary of Adani Power, for 2x800 MW thermal power project at Mirzapur Phase I, Uttar Pradesh.
As part of the contract agreement signed on June 5, 2024, BHEL will supply equipment such as boiler, turbine, generator, as well as supervise erection & commissioning for power projects based on supercritical technology for both the plants.
Besides, boiler and turbine generator for both thermal projects will be manufactured at BHEL’s Trichy and Haridwar plants, respectively, the release says.
Boosted by the deals, BHEL shares opened higher at ₹271, up 6.1% against the previous closing price of ₹255.25 on the BSE. In the first hour of trade so far, the PSU stock gained as much as 12.9% to ₹288.15, while the market capitalasition rose to ₹99,465 crore.
BHEL shares touched its 52-week high of 322.35 on May 21, 2024, rebounding 2875 from its 52-week low of 83.10 touched on June 9, 2023. The stock has rallied 63% in six months despite flat returns in the past one month.
In a similar trend, Adani Power shares belled 3.1% higher at ₹749 against the previous closing price of ₹726.15 on the BSE. Extending opening gains, the Adani group stock rose by 8.2% to ₹785.90, while the market capitalisation inched close to ₹3 lakh crore.
The stock price of Adani Power hit its 52-week high of 896.75 in exit poll rally on June 3, 2024, after most of the polls indicated that the BJP-led NDA will get a strong mandate in Lok Sabha Elections 2024. In the last one year, the stock has zoomed 197%, while it surged 40% in six months and 33% in the past one month.
Earlier in March this year, BHEL had received an order worth ₹4,000 crore from Adani Power for setting up the 2x800 MW thermal power plant at Raigarh, Chhattisgarh.
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