Shares of Olectra Greentech climbed 6 per cent in Monday’s trade after Evey Trans Private Limited (EVEY) received two letter of awards (LOAs) from Telangana State Road Transport Corporation (TSRTC) for 550 electric buses, consisting of 500 buses for intra-city and 50 buses for inter-city operations.
EVEY, which is the only 100 per cent electric bus operator in India, will procure the buses from Olectra Greentech and would deliver them over a period of 16 months. The value of these buses would be approximately Rs 1,000 crores for Olectra.
Shares of Olectra Greentech jumped 5.54 per cent to hit a high of Rs 550. Since February 22, the scrip ahs jumped 40 per cent.
Olectra Greentech, a subsidiary of Megha Engineering and Infrastructures (MEIL), had last year acquired 34 per cent stake in Evey Trans (MHS). The transactions between Olectra and EVEY are to be considered as related party transactions and shall be conducted at arm’s length basis, Olectra said in a BSE filing.
“These orders for supply of 500 electric buses and 50 electric buses are to be on gross cost contract (GCC) / OPEX model basis for a period of 12 years and 10 years (contract period) respectively,” the company said in a BSE filing.
Olectra Greentech is engaged into manufacturing electric buses in India. It is India’s largest silicone rubber, composite insulators manufacturer for power transmission and distribution networks.
The scrip was earlier in the news after the subsidiary of MEIL said it would offer hydrogen bus in technical partnership with Reliance. An Emkay Global report suggested the e-bus volumes for Olectra stood at 222 units in FY22 and, in the first nine months, it stood at 406 units, accounting for 25.2 per cent of total of 1,593 units.
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