Olectra Greentech shares rise 3% as firm inks Rs 395-crore contract for EV plant

Shares of Olectra Greentech Ltd rose 3% after the electric bus manufacturer awarded a contract to Megha Engineering & Infrastructures Ltd (MEIL) for the construction of a greenfield electric vehicle manufacturing facility in Telangana. The proposed value of the contract is Rs 395.12 crore. Megha Engineering is the ultimate holding company and a related party to Olectra Greentech Limited.

Olectra Greentech stock gained 2.93% to Rs 1345 against the previous close of Rs 1306.65 on BSE. The stock has risen 150% in 2023 and gained 111% in a year.

Total 0.36 lakh shares of the firm changed hands amounting to a turnover of Rs 4.68 crore. Market cap of the firm rose to Rs 10,669 crore on BSE.

In terms of technicals, the relative strength index (RSI) of Olectra Greentech stood at 74.8, signaling it's trading in the overbought zone. Olectra Greentech stock has a one-year beta of 0.3, indicating very low volatility during the period. Olectra Greentech shares are trading higher than the 20 day, 50 day, 100 day and 200 day averages.

Olectra Greentech stock closed at Rs 1306.65, down 0.21% lower in the previous session on BSE. The stock touched an intraday high of Rs 1348.85 on BSE.

The manufacturing facility is being built on 150 acre at Seetharampur, Hyderabad, at a cost of Rs 395.12 crore.

As per the contract, construction of the greenfield EV manufacturing facility will be completed within 12 months from the date of approval of the shareholders (July 19, 2023). The contract has been awarded to MEIL, which is the ultimate holding company and related party to Olectra, it added.

Olectra Greentech was established in 2000 and pioneered the introduction of electric buses in India in 2015. It is also the largest manufacturer in India of silicone rubber/composite insulators for power transmission and distribution networks.

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