Why This LIC-Backed Small Cap Stock Is Surging 10% Today

The share price of GMR Power and Urban Infra bolted close to 10% on Wednesday to hit an intraday high of ₹36.60.

What Happened: The massive surge today comes as the company announced that its subsidiary GMR Smart Electricity Distribution Private Limited bagged a major project from Dakshinanchal Vidyut Vitran Nigam Limited. The project is to implement the smart metering project in the Dakshinanchal (Agra, and Aligarh zone) area of Uttar Pradesh. The GMR Group company will install, integrate and maintain 25.52 lakh smart meters in the given areas.

The implementation tenure is expected to be 27 months from the date of execution of the contract and an operating period of 93 months. The total contract value (inclusive of GST) for the Agra & Aligarh Zone is about ₹2,469.71 crore.

See Also: What’s Going On With IRCTC’s Share Price Today?

Earlier this month, the company had announced receiving the letter of award from Purvanchal Vidyut Vitran Nigam Limited to implement the smart metering project in the Purvanchal (Varanasi, Azamgarh zone and Prayagraj, Mirzapur zone) area of Uttar Pradesh. The order is for 50.17 lakh smart meters and over ₹5,000 crore.

The company just yesterday announced that it had increased its holding in GMR Smart Electricity Distribution to 100%. Earlier it held around an 82% stake in the company. LIC owns a 1.72% stake in the company.

Price Action: GMR Power and Urban Infra’s share price was locked in 10% upper circuit at ₹36.60 on Wednesday morning.

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Posted In: NewsContractsMoversTrading IdeasGMRGMR Power and Urban InfraGMR Smart Electricity Distribution Private Limited