GMR Power’s Stock Rises 10% on 2,470 Crore Smart Metering Project in Uttar Pradesh

Following the award of a smart metering project in Uttar Pradesh worth 2,470 crore, GMR Power and Urban Infra saw a 10% increase in share price.

Following the receipt of a Letter of Award (LOA) for a smart metering project in Uttar Pradesh valued at 2,470 crore, the share price of GMR Power and Urban Infra Limited increased by about 10% on Wednesday during trade. On the BSE, the share prices of GMR Power and Urban Infra started at their intraday lows of 34.01 each. GMR Power and Urban Infra’s share price was up 8.06% at 35.95 at 10:16 IST.

Dakshinanchal Vidyut Vitran Nigam Limited has awarded a letter of award to GMR Smart Electricity Distribution Private Limited (GSEDPL), a step-down subsidiary of GMR Power and Urban Infra Limited, to carry out a smart metering project in the Dakshinanchal (Agra, and Aligarh zone) region of Uttar Pradesh, the company announced in an exchange filing. 

25.52 lakh smart meters will be installed, integrated, and maintained by GSEDPL in the chosen sites. The implementation term, starting on the day the contract was signed, is anticipated to last 27 months, followed by a 93-month operating period.

On September 3, GSEDPL acquired a letter of authorization (LOA) from Purvanchal Vidyut Vitran Nigam Limited to carry out the smart metering project in the Uttar Pradesh region of Purvanchal (Varanasi, Azamgarh zone, and Prayagraj, Mirzapur zone). According to the company’s exchange filing, GSEDPL would install, integrate, and maintain 50.17 lakh smart meters in the specified region. 

The business stated in an exchange filing that the entire contract value for the Agra and Aligarh Zone is about $2,469.71 crores (including GST of Goods and Services Tax). 

The LOA has been approved in response to the e-tender published by UP Discoms for various areas of Uttar Pradesh. GSEDPL participated in the e-tender and won. Ten years will pass while the project is underway.

GMR Power’s share price has recovered after yesterday’s sell-off, according to Rajesh Bhosale, Equity Technical and Derivative Analyst, Angel One, and is now up 8%. 

But given that the stock has recently moved in circuits and that traders can refrain from making aggressive bets in these areas due to yesterday’s trading’s weakness in small and midcap stocks, we don’t have a meaningful perspective. Bhosale continued, 32 served as support in the broad range and 41 served as opposition.