Shares of JBM Auto, which were mostly muted early on Tuesday, surged sharply after announcing a contract win.

What Happened: JBM Ecolife Mobility, a subsidiary of JBM Auto, has secured a contract for the provision, operation, and upkeep of electric buses under the PM-eBus Sewa Scheme. The contract has been awarded a contract by Convergence Energy Services Limited (CESL). The contract entails the procurement, supply, operation, and maintenance of 1,390 electric buses.

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The contract, valued at around ₹7,500 crore, also includes the development of related electric and civil infrastructure on a Gross Cost Contracting (GCC) basis. The company anticipates the contract to be fulfilled within a span of 12 to 18 months.

The announcement helped the stock jump back into the green after it closed in the red on Monday. The shares of the company surged over 10% to hit an intraday high of ₹2,065.45. The stock has had a great year at boursse going up over 200%. However, it has seen some correction in the past few weeks. In the last 30 days, the stock has gone down around 16%.

Price Action: JBM Auto’s share price was up 6.68% to trade at ₹2,000.95 in the early hours of trading on Tuesday.

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