Olectra Greentech hits 5% upper circuit after receiving LoA for 50 electric buses

3 Jan 2022 , 04:45 PM

Olectra Greentech Limited and Evey Trans Private Limited (EVEY) were declared as least quoted (L-1) bidders for 353 Buses (which was intimated in earlier disclosure given by the Company on 16.12.2020), for 50 Electric Buses Evey has received Letter of Award from one of the State Transport Authorities (i.e for Inter-City Operations) under FAME-II scheme of Government of India.

This order for supply of 50 Elcctric Buses is on Gross Cost Contract (GCC) / OPEX model basis (i.e for Inter-City Operations) is for a period of 12 years (Contract Period) .

These Buses shall be delivered over a period of 12 months. The maintenance of these buses shall also be undertaken by the Olectra during the Contract Period. Value of this Contract is approximately Rs125cr to the Company. These transactions between the Company and EVEY are to be considered as related party transactions and shall be at arm’s length basis.

With these, total order book of Olectra for electric buses against above and earlier orders are around 1,523 electric buses after considering the deliveries already made, said company.

Olectra Greentech ended at Rs839.35 per piece higher by 5% on Sensex.