JSW Energy surges on talk that it may win Karnataka SEB contract

The stock rallied 15% to Rs 81.20 on the BSE on back of heavy volumes.

JSW Energy has moved higher by 15% to Rs 81.20 on the BSE on reports that the company may get the 750 MW Karnataka state electricity board power purchase contract.

JSW Energy sells power through combination of long-term and short-term Power Purchase Agreements (PPAs).

“For sale of its power, the company participates in bids sought by power procurers and has participated in a recent tender floated by Power Company of Karnataka Limited (PCKL) in which bids were opened yesterday and thereafter the bids are to be evaluated, processed and approved by various authorities prior to placement of any order/contract,” JSW Energy said.

The company made the clarification with reference to the news flashed on CNBC TV 18 "JSW Energy is second lowest bidder in Karnataka SEB PPA and may get 750MW PPA contract. Rate can be around 4.38/unit.

Whenever any proposal results into execution of binding documents, the company will comply with the provisions of the Securities and Exchange Board of India, it added.

The trading volumes on the counter jumped an over 10-fold with a combined 24.08 million shares changed hands on the BSE and NSE till 02:39 PM. The S&P BSE Sensex was down 0.06% at 27,025 points.