GMR Power soars 20% as subsidiary bags order to install 75 lakh meters in UP

The company has received a letter of intent (LOI) from Purvanchal Vidyut Vitran Nigam Limited and Dakshinanchal Vidyut Vitran Nigam Limited to implement the smart metering project.

GMR Power and Urban Infra shares surged 20 percent in early trade on July 14 after its stepdown subsidiary, GMR Smart Electricity Distribution Private Limited (GSEDPL), received an order from the Uttar Pradesh government to install 75 lakh smart meters in the state.

At 9:20 am, GMR Power and Urban Infra was trading at Rs 25 apiece, up 19.85 percent from the previous day's close on the National Stock Exchange.

Trading volume saw a huge surge with 62 lakh shares changing hands against the one-month daily traded average of 10 lakh shares.

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The company has received a letter of intent (LOI) from Purvanchal

Vidyut Vitran Nigam Limited and Dakshinanchal Vidyut Vitran Nigam Limited to implement the smart metering project.

"The LOI has been issued in conclusion to the e-tender floated by UP Discoms for different areas of Uttar Pradesh. GSEDPL participated in the e-tender and emerged as a winner", the company said in a regulatory filing on July 13. The project will be spanned over a period of 10 years.

The project will be executed under Revamped Distribution Sector Scheme (RDSS) and is expected to reduce the AT&C losses in the designated area and improve the operational and collection efficiency of UP Discoms.

On July 10, the company announced that independent director Venkata Srinivasa Rao Ilindra stepped down from his position due to personal reasons and other professional commitments.