Shares of Power Grid Corporation of India rallied over 5% in early trade on Thursday amid a slew of positive developments. The state-owned company has bagged three transmission projects, while it received its board approval to raise up to ₹12,000 through the issuance of bonds in one or more tranches in the financial year 2024-25.
Boosted by the developments, Power Grid shares opened higher at ₹287, up 4.6% against the previous closing price of ₹274.35 on the BSE. In the first two hours of trade so far, the PSU stock has risen as much as 5.4% to ₹289.10, while the market capitalisation increased to ₹2.65 lakh crore.
At the current level, the share price of Power Grid trades 3% lower than its 52-week high of ₹298.95 touched on March 7, 2024. The counter, however, has surged 68% against its 52-week low of ₹171.23 hit on April 19, 2023. In the last one year, the shares of the power transmission company climbed over 64%, while it rose 37% in six months and 7% in a month. The stock has risen 19% in the calendar year 2024.
In an exchange filing on April 16, Power Grid said it emerged as the successful bidder under tariff based competitive bidding to establish inter-state transmission systems in Rajasthan and Gujarat. The project will be executed on a build, own, operate, and transfer (BOOT) basis. The company, however, didn’t reveal the value of these transmission projects.
The project includes establishment of a transmission system for evacuation of power from Rajasthan REZ Phase IV (Jaisalmer/ Barmer Complex) and potential renewable energy zone in Khavda area of Gujarat under Phase-IV.
For the Part C of Rajasthan REZ Phase IV (Part 2: 5.5 GW) (Jaisalmer/ Barmer Complex), Power Grid will establish new 765/400/220 kV Pooling substation at Mandsaur, 765kV D/C transmission line and associated bays extension works at other existing substation in the state of Madhya Pradesh.
Besides, the company, for the Part E of Rajasthan REZ Phase IV (Part 2: 5.5 GW) (Jaisalmer/ Barmer Complex), will establish new 765 kV sub-station at Rishabhdeo, in the state of Rajasthan 765kV D/C transmission lines and associated bays extension works at other existing substations in the states of Rajasthan and Madhya Pradesh.
Adding to it, for the transmission project in potential renewable energy zone in Khavda area of Gujarat under Phase-IV, the company will augment works at existing sub-station.
In a separate development, the company, in an exchange filing on April 17, said that its board gave nod to raising of up to Rs 12,000 crore in one or more tranches via bonds under private placement in the fiscal 2024-25. The company will issue POWERGRID bonds, which will be unsecured, non-convertible, non-cumulative, redeemable, and taxable. The bonds will be listed on the BSE and/or NSE.
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