Olectra Greentech shares plunge 9% after rallying 39% in three days

Shares of Olectra Greentech Ltd declined 9 per cent in Tuesday's trade after rallying over 39 per cent in the last three sessions. The scrip had been in news after the subsidiary of Megha Engineering and Infrastructures said it would offer hydrogen bus in technical partnership with Reliance.

The stock fell 8.73 per cent to hit a low of Rs 489. Against a sell order of 3,71,827 Olectra Greentech shares on NSE, there were buy orders of 5,06,323 shares. The scrip had risen 39.25 per cent in the preceding three sessions.

Olectra Greentech is part of the MEIL Group. It is engaged into manufacturing electric buses in India. It is India’s largest silicone rubber, composite insulators manufacturer for power transmission and distribution networks. An Emkay Global report suggested the e-bus volumes for Olectra stood at 222 units in FY22 and, in the first nine months, it stood at 406 units, accounting for 25.2 per cent of total of 1,593 units.

Olectra, in a recent exchange filing, said the hydrogen bus is a fully carbon-free alternative to traditional public transportation.

"In the wake of the depletion of natural resources and the negative impacts of air pollution and emissions, Olectra has taken the initiative to accelerate the development of Hydrogen-powered buses. This initiative will help out the government to achieve its carbon-free hydrogen ambitions," the company said in an exchange filing.

A single hydrogen fill allows the bus to travel up to 400 km. Hydrogen for this range coverage takes just about 15 minutes, it said, adding that the bus generates only water as tailpipe emissions.

"When it comes to the system, type-4 hydrogen cylinders are established on the top of the bus. Moreover, the cylinders can withstand temperatures between -20 and +85 degrees Celsius," Olectra added.

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