On Thursday’s trading session, the shares of a company providing engineering, procurement and construction (EPC) services to the power sector surged by 3.4 percent on BSE to Rs. 1,555, after the Fund Raising Committee of the company approved Rs. 1,250 Cr fundraising through QIP.
At 11:11 a.m., the shares of Techno Electric & Engineering Company Limited were trading in the green at Rs. 1,530, up by 1.7 percent, compared to its previous closing price of Rs. 1,503.7, with a market capitalisation of Rs. 16,830 crores.
What’s the News:
According to the latest filings with the stock exchanges, the Fund Raising Committee of Techno Electric at its meeting held on 16th July approved the raising of funds through qualified institutional placement (QIP) up to an aggregate amount of Rs. 1,250 crores.
The approved floor price for the QIP is set at Rs. 1,506.58 per equity share, offering a discount of not more than 5 percent.
Previous News:
On April 29th, Techno Electric secured orders worth a total of Rs. 4,063 crores from various entities. Highlights include a Rs. 241 crore contract from Power Grid Corporation for a 765kV Substation in Bidar, Karnataka, and a Rs. 760 crore contract from Millennium Challenge Account, Nepal, for a 400kV Substation.
Other contracts include substations for Adani Transmission, Aparva Energy, IndiGrid Trust, NERES XVI, Damodar Valley Corporation, and REC Power Distribution across different regions.
Financials:
Financially, the company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 40.4 percent from Rs. 313 crore in Q4 FY22-23 to Rs. 439.6 crore in Q4 FY23-24.
Similarly, its net profit increased during the same period from Rs. 60.8 crore to Rs. 77.5 crore, indicating a growth of 27.5 percent YoY.
Stock performance:
The stock has delivered multibagger returns of nearly 241.2 percent in one year, and around 89.8 percent of positive returns in the last six months. So far in 2024, the shares of Techno Electric have given about 85.8 percent of positive returns.
About the company:
Techno Electric & Engineering Company Limited is engaged in providing engineering, procurement and construction (EPC) services to the three segments of the power sector including generation, transmission and distribution.
The company is also engaged in the generation of wind power through Wind Turbine Generators in the states of Tamil Nadu & Karnataka. It is recognised for its expertise in the light construction and heavy engineering segments across the power sector in India.
Written by Shivani Singh
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