Transformers & Rectifiers bags order worth ₹565 Crore

3 Oct 2024 , 02:49 PM

Transformers & Rectifiers (India) reported a ₹565 Crore order from the Power Grid Corporation of India, sending its shares soaring about 5% in trade on October 3.

The domestic order, which will be completed by the fiscal year 2025-2026, strengthens TRIL’s position as India’s second-largest transformer maker by capacity. The company will manufacture the equipment at its facilities near Ahmedabad, Gujarat.

At around 2.29 PM, Transformers & Rectifiers was trading 2.54% higher at ₹66, against the previous close of ₹651.45 on NSE. The counter touched an intraday high and low of ₹684, and ₹640, respectively.

The order is within the normal course of business and is not a related party transaction. This substantial contract demonstrates TRIL’s rising footprint in India’s power infrastructure industry. The company manufactures power, distribution, furnace, and speciality transformers for the domestic and foreign markets.

Last month, Rajasthan Rajya Vidyut Prasaran Nigam Limited placed another ₹114 Crore order for 50 MVA, 132/33 KV power transformers. The transformers will be manufactured and delivered by the next fiscal year.

Furthermore, in June, the company funded ₹500 Crore through a qualified institutional placement (QIP), which drew substantial interest from marquee names such as Nomura, Goldman Sachs, and HSBC, all of which participated in the fund raise.

The proceeds were intended to fund the company’s capex goals, repay its borrowings, and provide working capital, inorganic growth, and other general business reasons.

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