Small Cap Stock Below Rs 50 Hit 20% upper Circuit After Its Subsidiary Receives Rs 5,123.35 Cr LOA

Small Cap construction company GMR Power and Urban Infra Limited on Monday touched 20% upper circuit after GMR Smart Electricity Distribution Private Limited (GSEDPL), a stepdown subsidiary of the company, on Sunday received the Letter of Award (LOA) worth Rs 5,123.35 Crore from Purvanchal Vidyut Vitran Nigam Limited (PVVNL).

The LOA by PVVNL is for implementing smart metering project in the Purvanchal (Varanasi, Azamgarh zone and Prayagraj, Mirzapur zone) area of Uttar Pradesh, the company said.

Under the project, the GSEDPL will install, integrate and maintain 50.17 lakh smart meters in the mentioned areas.

The implementation duration is scheduled to be 27 months from the date of contract execution, with an operational period of 93 months.

According to the company, the total contract value (including GST) for Prayagraj and Mirzapur Zone is around Rs 2386.72 Crs and for Varanasi and Azamgarh Zone is approximately Rs 2736.65 Crs.

The LOA was given in response to the e-tender published by UP Discoms for various locations of Uttar Pradesh. The project will take ten years to complete.

This Advanced Metering Infrastructure (AMI) Project shall include Supply, Installation, Integration, Commissioning and Operation & Maintenance of smart meters on DBFOOT basis backed by state-of-the-art technology and software solutions for end-to-end automated system management, according to the company.

Moreover, The project will be executed under Revamped Distribution Sector Scheme (RDSS) and is expected to reduce the AT&C losses in the designated area and improve operational and collection efficiency of UP Discoms.

Meanwhile, the shares of GMR Power and Urban Infra on Monday with 20% upper circuit also hit 52-week high at Rs 34.24 per share on the BSE.

The shares jumped 38.46% in 1 week. Whereas, it jumped 71.37% in 1 month. In 3 months, it gave 101.29% multibagger return. In 1 year, it gave 8.18% positive return.