Stock of this GMR Group company has zoomed over 100% in past one month

Shares of GMR Power and Urban Infra surged 10% to Rs 46.29 on the BSE in Monday's intra-day trade and have zoomed 39% in the past four trading days

Shares of GMR Power and Urban Infra (GPUIL) surged 10 per cent to Rs 46.29 on the BSE in Monday’s subdued trade.

The average trading volumes on the counter nearly doubled today. A combined 21.28 million equity shares had changed hands on the NSE and BSE. In comparison, the S&P BSE Sensex was down 0.15 per cent at 67,735 at 10:23 AM.

In the past one month, the stock price of GPUIL has more than doubled or zoomed 103 per cent as compared to a 4.3 per cent rise in the S&P BSE Sensex. 

The company made its stock market debut on March 23, 2022. 

Today, the stock of the power generation company was trading higher for the fourth straight session, zooming 39 per cent during the period after its step-down arm GMR Smart Electricity Distribution received a Letter of Intent (LOA) for a smart metering project worth of Rs 2,470 crore from Dakshinanchal Vidyut Vitran Nigam Limited.

GMR Smart Electricity will install, integrate and maintain 2.552 million smart meters in the given areas.

The implementation tenure is expected to be 27 months from the date of execution of the contract and an operating period of 93 months.

The total contract value (inclusive of GST) for Agra & Aligarh Zone is about Rs 2,469.71 crore, the company said. The project will be spanned over a period of 10 years.

Earlier on September 3, GMR Group had received a Letter of Award (LOA) worth Rs 5,123 crore for smart metering project from Purvanchal Vidyut Vitran Nigam.

The LOA is to implement smart metering project in the Purvanchal (Varanasi, Azamgarh zone and Prayagraj, Mirzapur zone) area of Uttar Pradesh. GSEDPL will install, integrate and maintain 5.017 million smart meters in the given area.

Meanwhile, GMR has signed an MoU with the Uttar Pradesh Government for a total outlay of Rs 45,000 crore by 2028. This partnership will enable GMR to invest in several sectors, such as solar, energy efficiency, EV charging infrastructure, Green Hydrogen plants, data centres, and more.

During the financial year 2021-22, the company implemented the demerger of GMR Infrastructure and emergence of two separate listed entities – GIL (GMR Airports Infrastructure Limited) & GPUIL (GMR Power and Urban Infrastructure).

With this demerger of GIL business and the vesting of the Energy, Transportation & Urban Infra Businesses of GIL into GPUIL, the resultant simplified corporate holding structure has enabled the airport and non-airport businesses to chart their respective growth plans independently.

GPUIL is now strongly focused on the Energy, Transportation & Urban Infrastructure verticals as the key value drivers of the portfolio. The Transportation vertical includes Highways & DFCC projects leveraging the EPC capabilities of the Group.

As a material development, the company has strong focus on reducing ‘third party’ corporate debt and liabilities at GPUIL level, and it has taken additional loans from GMR Airports Infrastructure (GIL) in order to pay off third party corporate debt.

There is a further commitment to convert outstanding FCCBs into equity to ensure there is no continuing debt liability on this account.  

Further, GPUIL has a number of initiatives in place to pay off or refinance existing third party debt in order to strengthen the balance sheet of the company and prepare for future growth, GPUIL said in its FY23 annual report.