Power Grid Corp firms up after acquisition

Power Grid Corporation of India was up 1.44% to Rs 187.05 after the company said it acquired Rampur Sambhal Transco as a special purpose vehicle to establish transmission system in Uttar Pradesh.

Power Grid Corporation of India (PGCIL) announced that pursuant to its selection as the successful bidder under tariff based competitive bidding, the company on 12 December 2019 acquired Rampur Sambhal Transco (RSTL), the project special purpose vehicle (SPV) to establish transmission system for construction of 765/ 400/ 220 kV GIS substation, Rampur and 400/ 2201 132 kV GIS substation, Sambhal with associated transmission lines, on build, own, operate and maintain (BOOM) basis from REC Transmission Projects Company (the bid process coordinator).

The transmission system comprises 400kV transmission line apart from establishing a new 765/400/220 kV substation at Rampur, Uttar Pradesh, and a new 400/220/132 kV substation at Sambhal, Uttar Pradesh. The transmission system is an intra state transmission system project and is to be progressively constructed by August 2021.

On the technical front, the stock's RSI (relative strength index) stood at 40.753. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading below its 200 day moving average (DMA) placed at Rs 196.47. It was also below its 50 DMA placed at Rs 195.03.

Power Grid Corporation of India, a 'Navratna' company operating under Ministry of Power, is engaged in power transmission business. The company transmits about 50% of the total power generated in India on its transmission network.

The government held 55.37% stake in the company as on 30 September 2019.

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