Olectra Greentech spurts on emerging L-1 bidder for supplying e-buses

Olectra Greentech jumped 7.74% to Rs 112.80 after the company said it emerged as the lowest bidder to provide 353 electric buses to state transport authorities and state government undertaking.

Olectra Greetech on Wednesday announced Evey Trans and Olectra Greentech have been declared as L-1 bidders for 353 electric buses from 5 state transport authorities and one state government undertaking including under FAME-II scheme of Government of India.

Out of these tenders for 353 buses, tenders for 300 buses are on Gross Cost Contract/OPEX model basis for a period in the range of 10-12 years and tenders for 53 buses are on outright sale basis.

In respect of the tenders for 250 buses EVEY had participated either as a single bidder with pre-bid tie up with the company or as a lead bidder in consortium with the company. Olectra said once Letters of Award are received by EVEY for 250 buses, it shall procure these electric buses from the company and remaining buses shall be manufactured and deployed by the company at its own.

The value of these tenders is approximately Rs 600 crore to the company. These transactions between the company and EVEY are to be considered as related party transactions and shall be at arm's length basis.

Olectra Greentech has major interests in composite insulators, amorphous core-distribution transformers, data analysis, IT consulting and electric buses.

On a consolidated basis, Olectra Greentech's posted a net profit of Rs 51 lakh in Q2 September 2020 as against a net loss of Rs 3.3 crore reported in Q2 September 2019. Net sales rose 12.4% year on year to Rs 50.24 crore in Q2 September 2020.

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