2 hrs ago
Ceigall India Jumps After ₹5,300 Crore Transmission Project LoI
Ceigall India is a company that works on infrastructure projects.
It received a letter of intent for a large electricity-transmission project in Gujarat.
The project is valued at about ₹5,300 crore.
It will include a large substation and around 300 kilometres of transmission lines.
The company expects to receive ₹608.67 crore each year during the project’s 35-year operating period.
Building the project is expected to take three years.
Investors reacted positively to the announcement, sending the company’s shares up by more than 4%.
The stock has risen 30% so far this year.
Ceigall India shares rose 4.3% to ₹363.60 in morning trading on the BSE.
The move followed the company’s receipt of a ₹5,300 crore letter of intent from REC Power Development and Consultancy Limited.
The project involves a 765/400 kV air-insulated substation and about 300 km of transmission lines in Gujarat.
Ceigall India said the project will generate annual transmission charges of ₹608.67 crore for 35 years.
The project is expected to take 36 months to execute, while the stock has gained 30% year-to-date.
- Who
- Ceigall India and REC Power Development and Consultancy Limited.
- What
- Ceigall India received a ₹5,300 crore letter of intent to develop a major common transmission system.
- Where
- The project is in Gujarat, covering power evacuation from Lakadia, Jam Khambhaliya and Jamnagar.
- When
- The letter of intent was disclosed on 3 September, and the shares rose on Friday, 4 September.
- Why
- The shares rose after investors reacted to the company securing the large transmission project.
Key facts
- Project value
- Approximately ₹5,300 crore
- Awarding company
- REC Power Development and Consultancy Limited
- Project scope
- A 765/400 kV air-insulated substation and approximately 300 km of transmission lines
- Annual transmission charges
- ₹608.67 crore
- Operational period
- 35 years
- Execution period
- 36 months
- Share-price move
- The stock rose 4.3% to an intraday high of ₹363.60
Sources
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