Shares of Power Grid Corporation of India, a government-owned power transmission company, are attracting attention due to a series of favorable developments. The 'Maharatna' company has disclosed in three distinct announcements that it has successfully acquired two special purpose vehicles (SPVs) and has completed the commissioning of a 500 MW wind power project in Tamil Nadu. Additionally, the company has revealed plans for a meeting of its "Committee of Directors for Bonds" in December 2023, where the issuance of taxable bonds through private placement will be deliberated.

For the second consecutive session, Power Grid shares initiated trading on a positive note, opening at Rs 235, reflecting a 0.7% increase from the previous closing price of Rs 233.30 on the BSE. During the early trading hours, the public sector undertaking (PSU) stock recorded a gain of up to 1.1%, reaching Rs 235.85, contributing to a rise in market capitalization to Rs 2.18 lakh crore.

Power Grid shares have witnessed a decent rally in the recent past, with the share price rebounding nearly 53% from its 52-week low of Rs 153.34 on January 9, 2023, to hit a fresh 52-week high of Rs 238 on December 15, 2023. The power heavyweight has risen 46% on year-to-date (YTD), while it added 26% in the past six months. In the last one month, the counter added nearly 12%.

In a post market release, Power Grid said that it has commenced commercial operations at its 500 MW wind energy zone in Tamil Nadu. “It is to inform that project under “Evacuation of RE in Tirunelveli and Tuticorin wind energy zone (Tamil Nadu) 500 MW” has been commissioned with effect from December 24, 2023 for which notification for commercial operation (DOCO) has been received on December 26, 2023", the company said.

In a pair of distinct statements, the company disclosed its acquisition of two special purpose vehicles (SPVs), namely Vataman Transmission and Koppal II Gadag II Transmission. These acquisitions were made through tariff-based competitive bidding facilitated by PFC Consulting. Koppal II Gadag II Transmission Ltd (KIIGIITL) has been procured with the aim of establishing a transmission system for the integration of renewable energy zones (Phase-II) in Koppal-II (Phase-A & B) and Gadag-II (Phase-A) in Karnataka. The acquisition is structured under the build, own, operate, and transfer (BOOT) basis.

“The project comprises establishment of a new 765/400kV Koppal- II Pooling Station; a new 400/220kV Gadag- II Pooling Station; 2 nos. of 765kV D/c transmission lines traversing in the state of Karnataka; 400kV D/c transmission line traversing in the state of Karnataka as well as associated bay extension works at Narendra and Raichur Substations", the release notes.

On the other hand, Vataman Transmission Limited (VTL) has been acquired to establish a transmission system for evacuation of an additional 7 GW of RE power from Khavda RE park under Phase III Part B, on BOOT basis. “The Project comprises establishment of a new 765/400kV switching station at Vataman in Ahmedabad district, 3 nos. of 765kV D/c transmission lines (including a LILO line) traversing in the state of Gujarat as well as extension works at Navsari and Halvad substations", it says.