Ceigall India shares gain on winning ₹550 crore solar power contract in Madhya Pradesh

Shares of Ceigall India Ltd. gained over 2% on Monday, December 22, after the infrastructure construction company announced it has won a new contract worth roughly ₹550 crore.

It has emerged as the lowest bidder in the financial bid conducted by Madhya Pradesh Urja Vikas Nigam Ltd. (MPUVNL) for setting up 130 MW (AC) of grid-connected solar photovoltaic power plants under the Surya Mitra Krishi Feeders Scheme–PM KUSUM-C.

The projects, to be developed across two districts in Madhya Pradesh and executed within 18 months, will operate under the condition of a 25-year power purchase agreement.

Last month, the company's wholly-owned subsidiary, Ceigall Infra Projects Pvt. Ltd., bagged a ₹1,809-crore road development project in Madhya Pradesh.

It had topped the financial bid opening for the Indore–Ujjain greenfield four-lane highway project, spanning 48.1 km and awarded by the Madhya Pradesh Road Development Corporation Ltd.

That project will be executed under the Hybrid Annuity Model (HAM) and must be completed within 24 months. The bid cost stands at ₹1,089 crore, as per details in the filing.

In the September quarter, the company reported a marginal decline in revenue on a sequential basis but rose 4.45% from the year-ago period. Revenue was at ₹806.57 crore in the second quarter from ₹838.18 crore in the previous quarter and ₹772.19 crore last year.

Shares of the company were trading at ₹249.64 as of 1:54 pm, up 2.37% from the day's opening on the NSE.

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