Polycab up 4% on emerging as L1 bidder for Rs 4,099 crore project from BSNL

The deal's tenure includes 3 years for construction and 10 years for maintenance contracts at 5.5 per cent per annum of capex for the first 5 years and 6.5 per cent per annum for the next 5 years

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Polycab shares gained 4 per cent in trade and registered an intraday high of Rs 6,907.1 per share on BSE. The buying in the stock sparked after the company emerged as the lowest bidder (L1) for developing the middle mile network of Bharat Net.

 

Around 12:23 PM, Polycab shares were up 3.25 per cent at Rs 6848.1 per share on BSE. In comparison, the BSE Sensex was up 0.90 per cent at 80,189.44. The market capitalisation of the company stood at Rs 1,02,990.47 crore. The 52-week high of the stock was at Rs 7,607.15 per share on BSE and 52-week low of the stock was at Rs 3,812.35 per share.

 

"Polycab India Limited emerges as the Lowest Bidder (L1) from Bharat Sanchar Nigam Limited (BSNL) for “Development (Creation, Upgradation and Operation & Maintenance) of Middle mile network of Bharat Net on Design Build Operate and Maintain (DBOM) Model” – Package 4 (Karnataka, Goa and Puducherry)," the filing read. 

 

The order was received from Bharat Sanchar Nigam Limited (BSNL). The deal's tenure includes 3 years for construction and 10 years for maintenance contracts at 5.5 per cent per annum of capex for the first 5 years and 6.5 per cent per annum of capex for the next 5 years. The size of the contract is worth over Rs 4,099 crore. 

 

Polycab India Limited manufactures wires, cables, and electrical solutions. It is well-known for its high-quality products, extensive distribution network, and leadership in the Indian electrical industry. Established in 1996, Polycab has grown significantly, becoming a prominent player in both the domestic and international markets.

 

The company has a diverse product portfolio that ranges from wires and cables to electrical appliances and renewable energy solutions. It has strong presence in both domestic and international markets.

 

BSNL is one of the largest and oldest telecommunications companies in India. It is a public sector enterprise owned by the Government of India, providing a wide range of telecommunication services across the country. BSNL has been a significant player in the Indian telecom market, offering services such as mobile telephony, landline services, broadband, internet, and enterprise solutions.

 

In the past one year, Polycab shares have gained 29 per cent against Sensex's rise of 22 per cent.