PowerGrid Corporation of India gains after board accords investment approvals

PowerGrid Corporation of India gained 0.99% to Rs 138.40 at 10:00 IST on BSE after the company said its board of directors at its meeting held on 24 December 2014 have accorded investment approvals worth Rs 6574.83 crore.

The company made announcement after market hours on Friday, 26 December 2014.

Meanwhile, the S&P BSE Sensex was up 186.75 points or 0.69% at 27,428.53.

On BSE, so far 15,321 shares were traded in the counter as against average daily volume of 2.79 lakh shares in the past one quarter.

The stock hit a high of Rs 139.35 and a low of Rs 137.50 so far during the day. The stock hit a 52-week high of Rs 150.85 on 11 November 2014. The stock hit a 52-week low of Rs 93.25 on 28 February 2014.

The stock had outperformed the market over the past one month till 26 December 2014, declining 1.44% compared with Sensex's 4.03% fall. The scrip had however underperformed the market in past one quarter, gaining 0.07% as against Sensex's 2.31% rise.

The large-cap power distribution company has equity capital of Rs 5231.59 crore. Face value per share is Rs 10.

The board of PowerGrid accorded investment approvals for 'Procurement of DWDM Telecom equipment, DCPS System, Air-conditioning system and Shelter due to augmentation of Telecom network for BSNL requirements' at an estimated cost of Rs 57.47 crore, with commissioning schedule of 6 months from the date of award and for 'Inter-Regional System Strengthening Scheme for WR and NR (Part-B)' at an estimated cost of Rs 6517.36 crore, with commissioning schedule of 40 months progressively from the date of investment approval. The board also accorded approval to Sovereign Loan (PowerGrid as Direct Borrower for a loan) from 'KfW, Frankfurt am Main, (KfW), Germany' for an amount of Euro 500 million for financing of Green Energy Corridors: Inter-State Transmission Strengthening Scheme (ISTS) - Part A, B & C.

PowerGrid Corporation of India's net profit fell 3.1% to Rs 1201.27 crore on 5% rise in total income to Rs 4309.26 crore in Q2 September 2014 over Q2 September 2013.

The Government of India holds 57.9% stake in the firm as at 30 September 2014.

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