Power Mech shares surge 5% after bagging orders worth ₹1,000 crore from Adani Power subsidiaries

Shares of Power Mech have surged by over 5% after the company bagged two orders worth nearly ₹1000 crore.

The Hyderabad-based construction and engineering company said that it has received these contracts from two subsidiaries of Adani Power Limited.

Power Mech Gets New Orders

The first order came from Adani subsidiary Mirzapur Thermal Energy (UP) Private Limited. This project is valued at ₹515 crore. The scope of this project entails erection, testing, commissioning, and performance guarantee tests of the steam generator (SG) (Package A) and Steam Turbine Generator (STG) (Package B) for Unit 1 and 2 of 2x800 MW Mirzapur Phase-I Ultra Supercritical Thermal Power Project.

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The second order is from Mahan Energen Limited. Similar to the aforementioned order, Power Mech's scope of work includes erection, testing, commissioning, and manpower assistance for the performance guarantee test of the steam generator (SG) & steam turbine generator (STG) and its auxiliaries for the 2x800 MW Mahan Phase III Ultra Supercritical Thermal Power Project.

This order is valued at ₹490 crore.

Both these projects are expected to be completed in 36 months from the required erection start date as notified in the Notice To Proceed.

The shares of Power Mech have seen a spike of over 5% today and are currently trading with gains of 4.65%, or ₹97, which has surged to ₹2,182 per share and is over 36% behind its 52-week high of ₹3,415.00.