Power Grid shares gain over 2% on new acquisition; check details

Power Grid shares saw strong investor traction today. The stock rose 2.3% intraday to a day high of ₹295.25 per share. As of 3:00 pm, the Power Grid stock is trading at ₹294.5 apiece, up 2.0%.

The rise in the stock price comes after the company announced acquisition of MEL Power Transmission (MPTL), a project-specific special purpose vehicle (SPV), established under the tariff-based competitive bidding (TBCB) route by PFC Consulting Limited.

MPTL will be acquired at the aggregate value of about ₹8.53 crore including 10,000 equity shares at par at Rs. 10/- each along with assets and liabilities of MPTL as on the acquisition date. MPTL shall be engaged in the business of transmission of power. The company is yet to start the commercial operation, as such no turnover has been recorded during the last three years.

In the March quarter, the company reported 0.6% YoY decline in revenue to ₹₹10,983 crore, while standalone net profit rose 5.1% YoY to ₹4,336 crore. The company’s board of directors recommended a final dividend of ₹1.25 per share for the financial year.

So far this year, Power Grid Corporation's share price has declined about 4.6%. The PSU stock recently hit a 52-week low of ₹247.50 on February 28 this year after hitting a 52-week high of ₹366.20 on September 25 last year.

Power Grid Corporation of India Limited is a Maharatna CPSU and India’s largest electric power transmission company. The company has paid consistent dividends to its shareholder. Its current dividend yield stands at 3.82%.