Power Grid Share Price Surged 4% on Transmission Project Wins

Power Grid share price rallied to 5% up from 4% on Monday, to ₹289.10 on the BSE in Thursday’s intra-day trade after it has been declared as the successful bidder under tariff based competitive bidding (TBCB) to establish inter-state transmission systems on build, own operate and transfer (BOOT) basis. Power Grid share price had hit a 52-week high of ₹298.95 on March 7, 2024. At this price, the scrip has gained 19.58 per cent in 2024 so far and 64.63 per cent in the past one year.

The first project is the transmission system for the evacuation of power from Rajasthan (Jaisalmer/Barmer Complex). They will handle evacuating power from specific areas in these regions. They have also received Letters of Intent for similar projects in the same regions. Additionally, on April 10, the company informed that the project under transmission system for evacuation of power from 2X500MW Neyveli Lignite Corp. Ltd TS-1 (Replacement) (NNTPS) in Neyveli, Tamil Nadu has been commissioned with effect from February 10, 2024.

Meanwhile, Power Grid, the state-owned power transmission company on Wednesday, approved a proposal to raise up to ₹12,000 through the issuance of bonds in one or more tranches in 2024-25. "Committee of Directors for Bonds in their meeting held on April 17, 2024 has approved the raising of Bonds as Unsecured, Non-convertible, Non-cumulative, Redeemable, Taxable Power Grid Bonds Issue(s) during FY 2024-25 in one or more tranches/series up to ₹12,000 crore," it said.

"Power Grid could be a good play on the transmission sector. The margin of security in significantly higher at current levels," Vinit Bolinjkar, Head of Research at Ventura Securities, told Business Today TV. Analysts largely suggested positive views on the counter.

Power Grid Corporation securing these three transmission projects through competitive bidding underscores its prowess in the energy sector and its commitment to enhancing India’s power infrastructure. By winning these projects, Power Grid reaffirms its position as a key player in the transmission segment.