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The shares of one of the leading PSU stock owned by the Government of India, specializing in the transmission of electricity across India., jumped up to 2 percent following its success as the winning bidder under Tariff-Based Competitive Bidding for acquiring (GIIKIITL)
Price action
With a market capitalization of Rs. 2,76,832 crores on Friday, the shares of Power Grid Corporation of India Ltd (NS:PGRD) is trading at Rs. 301.85 up by 2 percent making a high of Rs. 303.40 per share compared to its previous closing price of Rs. 297.65 per share.
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What Happened
Power Grid Corporation of India Limited specializing in the transmission of electricity and the development of high-voltage networks across India, has been selected as the successful bidder under Tariff based competitive bidding, for acquiring Gadag II and Koppal II Transmission Limited.
The acquisition was made for approximately Rs. 13.24 crore. It was carried out through a tariff-based competitive bidding process and includes 10,000 equity shares at par at Rs. 10/- each, along with the assets and liabilities of GIIKIITL.
The project Special Purpose Vehicle (SPV) involves constructing a 400kV transmission line between Koppal-II and Gadag-II in Karnataka, enhancing the transformer capacity at Power Grid’s substations in these locations, and taking over the responsibility to execute this specific project under the Build, Own, Operate, and Transfer (BOOT) model.
Transmission Overview
As of October 31, 2024, Power Grid Corporation of India operates an extensive transmission network, including 1,515 transmission lines covering 1,78,975 circuit kilometers (ckm) and 280 substations with a combined capacity of 5,43,961 MVA. The system boasts a high reliability with an impressive 99.80 percent system availability, and it transmits 45 percent of India’s total power.
The infrastructure also includes 18 HVDC substations, 63 substations at 765 kV, 168 substations at 400 kV, 20 SVC/STATCOMs, and 64 GIS substations. With more than 290,000 transmission towers and more than 3,800 transformers and reactors.
FY25 Capex Plan
Power Grid Corporation of India has outlined a capital expenditure plan of Rs. 18,000 crore for FY25. This includes Rs. 4,084 crore for the RTM (Revenue-based Transmission Management), Rs. 12,816 crore for TBCB (Tariff-Based Competitive Bidding) projects, and Rs. 1,100 crore for other non-DCO (Non-Dedicated Corridor Operations) initiatives.
Financials
The company’s revenue rose by 2.73 percent from Rs 11,530 crore to Rs 11,845 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs 3,781.42 crores to Rs 3,793.02 crore during the same period.
Written by Sridhar J
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The post PSU stock jumps after company to acquire Gadag II and Koppal II Transmission for ₹13 Cr appeared first on Trade Brains.
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