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Power Grid Corp bags transmission projects in UP

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Capital Market
Last Updated : Nov 23 2019 | 1:50 PM IST

Power Grid Corporation of India (PGCIL) said it was declared as the successful bidder in two intra-state transmission system projects of Uttar Pradesh under tariff-based competitive bidding (TBCB).

PGCIL will construct 765/400/220 kilovolt (kV) GIS substations in Meerut and Rampur; and 400/220/132 kV GIS substations in Simbhaoli and Sambhal with associated transmission lines.

The projects are to be established under BOOM (build, own, operate and maintain) basis. The company received letters of intent for the projects on 22 November 2019. The announcement was made after market hours yesterday, 22 November 2019.

Shares of PGCIL rose 1.53% to Rs 198.55 on Friday, 22 November 2019.

The counter witnessed steep volatility in the past one month. The stock corrected 9.19% in sixteen days to Rs 187.30 on 15 November 2019, from its high of Rs 206.25 on 23 October 2019. It bounced back 6.01% in five trading sessions to Rs 198.55 on Friday, 22 November 2019.

On the technical front, the stock's RSI (relative strength index) stood at 56.25. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 200 day moving average (DMA) placed at Rs 196.04. It was also above its 50 DMA placed at Rs 197.79.

PGCIL reported 9.5% rise in consolidated net profit to Rs 2571.10 crore on 6% increase in net sales to Rs 9051.29 crore in Q2 September 2019 over Q2 September 2018.

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Power Grid Corporation of India, a 'Navratna' company operating under Ministry of Power, is engaged in power transmission business. The company transmits about 50% of the total power generated in India on its transmission network.

The government held 55.37% stake in the company as on 30 September 2019.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi on Wednesday, 20 November 2019, approved cutting government's stake in select PSUs below 51% while retaining management control.

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First Published: Nov 23 2019 | 11:30 AM IST

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