By Malvika Gurung
Investing.com -- Shares of the electric buses manufacturer Olectra Greentech (NS: OLEC ) rallied 14.72% on Friday and hit a new 52-week high of Rs 1,196.95 apiece during the session, following the company’s announcement of bagging an order for 5,150 electric buses in Maharashtra.
The small-cap company has informed the stock exchanges that its consortium with Evey Trans Private Limited (EVEY) has received a Letter of Intent (LOI) from Maharashtra State Road Transport Corporation (MSRTC).
The order involves the supply, operation and maintenance of 5,150 Electric Buses, along with allied Electrical and Civil Infrastructure on a Gross Cost Contract (GCC) basis.
Both Olectra Greentech and Evey Trans are subsidiary companies of Megha Engineering and Infrastructures Ltd (MEIL).
The value of the supply of 5, 150 electric buses would be approximately Rs 10,000 crore for Olectra. The transaction between the two consortium companies will be considered as related party transactions, and shall be conducted at arm's length basis, Olectra stated on Friday.
Regarding the time period of the order, the contract period is of 12 years, while EVEY is to procure the buses from Olectra Greentech and deliver it over a 24-month period.
The maintenance of these buses will also be done by Olectra during the Contract Period.
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