A significant rise was seen in the shares of GMR Power and Urban Infrastructure on Wednesday. Their share price saw an increase of 5 percent, taking it to Rs 42 per share.
S&P BSE Sensex was also trading in light green at 66,011 levels. Shares of this electric and infrastructure development company have seen a rise of 22 per cent in the last month, which is more than the 0.8 per cent rise of the benchmark Sensex.
The company recently announced increase in its stake in its subsidiary GMR Energy from 57.7 per cent to 86.9 per cent in an exchange filing. The news of this acquisition increased confidence among investors and the shares rose.
Several factors contributed to the notable rise in shares of GMR Power and Urban Infrastructure. First, the company recently announced a major contract win for a coveted infrastructure project. The news generated a sense of confidence among investors, who recognized the potential for significant revenue growth in the coming years. The contract win acted as a catalyst for a surge in share prices.
Additionally, GMR Power and Urban Infrastructure has a history of delivering strong financial performance. The company’s steady revenue growth, as well as its ability to efficiently execute projects, has attracted positive attention from investors. This solid reputation played an important role in attracting buyers, causing share prices to rise.
Finally, market sentiments also played a role in the rise. Positive sentiment towards energy and infrastructure sectors driven by expectations of increased government spending and favorable policy changes has created an optimistic environment for GMR Power and urban infrastructure. Investors saw value in the stock and rushed to take advantage of the rally.
GMR Energy, established on October 10, 1996, is engaged in the business of development, operation, maintenance, power generation, transmission, distribution and trading of power projects. In Q2FY24, GMR Power’s sales income declined 60 per cent to Rs 627 crore. However, in the same quarter their operational profit increased by 89 percent to Rs 108 crore.
