Rajesh Power Services Ltd. saw its shares surge by as much as 8% on Monday following the announcement of a substantial new contract. The company secured orders valued at ₹471.92 crore, inclusive of taxes, from Madhya Gujarat Vij Company Ltd. (MGVCL) for critical power distribution network projects in Gujarat.
Key Details of the Gujarat Power Contract
The newly awarded domestic turnkey projects are set to be executed over an 18-month period. These contracts are part of MGVCL's SI Scheme Robust-III and focus on enhancing the region's electrical infrastructure.
- Project Scope: Conversion of existing 11 kV overhead lines into medium-voltage covered conductors (MVCC).
- Network Expansion: Development of an underground power distribution network across various locations within Gujarat.
- Client: Madhya Gujarat Vij Company Ltd. (MGVCL), a state-owned power distribution company.
The company confirmed that these orders were received in the normal course of business, with no promoter group interest in the awarding entity, ensuring the transactions do not fall under related-party categories.
Rajesh Power Services: An Overview
Rajesh Power Services Ltd. specializes in providing comprehensive engineering, procurement, and construction (EPC) services. Their expertise spans underground power transmission and electrical infrastructure projects.
The company's service offerings include:
- Project design and consultancy.
- Procurement and execution.
- Testing and commissioning.
- Ongoing operations and maintenance.
- Specialized cable testing and fault-location services.
The announcement of this significant contract, made in a filing dated October 12, led to a positive market reaction, with shares touching a high of ₹789, marking a 7.66% increase from their previous close of ₹732.85.