Power Mech Secures Rs 209.50 Cr Order for O&M from Hindustan Zinc
Power Mech Projects Limited wins a ₹209.50 crore order for the operation and maintenance of Hindustan Zinc's 3X91.5 MW CPP in Chanderiya, with a four-year contract and execution period of 48 months
by Damodharan N
Updated Jul 19, 2024
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Table of Content
Power Mech Projects Limited has recently secured a substantial order worth ₹209.50 crores from Hindustan Zinc Limited. This contract involves the operation and maintenance of a 3X91.5 MW Captive Power Plant (CPP) located in Chanderiya, Chittorgarh. The agreement is set for a period of four years, reflecting a significant commitment to maintaining and optimizing the power plant's operations.
The order, awarded by the domestic entity Hindustan Zinc Limited, encompasses comprehensive operational and maintenance services to ensure the efficient functioning of the power plant. The contract is valued at ₹209.50 crores, underscoring the scale and importance of the project.
The execution of this contract is scheduled to be completed within 48 months, highlighting Power Mech's role in supporting vital industrial infrastructure. This development is a testament to Power Mech's continued growth and expertise in the sector.
In related news, Power Mech Projects Limited has announced the closure of its trading window from July 1, 2024. This closure will remain in effect until 48 hours after the declaration of the company's un-audited financial results for the first quarter ending June 30, 2024.
The trading window was closed to ensure compliance with regulatory requirements and to prevent any potential insider trading related to the upcoming financial disclosures.
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Market Reaction
On July 18, 2024, following the announcement of Power Mech Projects Limited's order worth ₹209.50 crores from Hindustan Zinc Limited, the stock exhibited notable market activity on NSE.
The share opened at ₹5,974.00 and reached a high of ₹6,080.00 during the trading session. It experienced a low of ₹5,859.85 before closing at ₹6,034.00. The Last Traded Price (LTP) was ₹6,025.00.
The average price for the day was ₹5,978.63, reflecting strong investor interest and positive sentiment. The stock's performance was marked by a substantial trading volume of 1,56,176 shares and a total value of ₹93,37,18,324.60 across 20,035 trades.
The announcement led to significant fluctuations, with the stock peaking at its 52-week high of ₹6,080.00, indicating a robust reaction from the market.
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Power Mech Projects
Power Mech Projects Limited, founded in 1999 by S. Kishore Babu, is a leading infrastructure-construction company based in Hyderabad, India. Known for its high-quality, safe, and timely services, the company excels in power and infrastructure sectors.
It manages over 4,00,000 MT annually with a workforce of 40,000+ and operates across 55 sites simultaneously. Power Mech undertakes diverse projects including Ultra Mega Power Projects, Super Critical and Sub Critical Thermal Power Projects, and Hydro Electric Projects.
It offers services in industrial and civil construction, electrical works, water management, mining, and overseas projects. With a presence in over ten countries, Power Mech also operates subsidiaries and joint ventures internationally.
Hindustan Zinc
Hindustan Zinc, a subsidiary of Vedanta Limited, is India's largest and the world’s second-largest integrated zinc producer, with over 50 years of experience. The company holds about 75% of India's primary zinc market share and is the third-largest silver producer globally, with an annual capacity of 800 MT.
Its operations include lead-zinc mining, zinc and lead smelting, and sulfuric acid production. Hindustan Zinc operates in five districts in Rajasthan—Udaipur, Chittorgarh, Bhilwara, Rajsamand, and Ajmer—and one district in Uttarakhand.
The company’s facilities include multiple mines and smelters, contributing to a total metal production capacity of 1.123 million tonnes. The company is committed to safety and resource conservation through advanced technology and innovation.
Power Mech Secures Rs 209.50 Cr Order for O&M from Hindustan Zinc - FAQs
1. What is the value of the new order Power Mech received?
Power Mech Projects Limited has received a substantial order valued at ₹209.50 crores.
2. Who awarded the order to Power Mech?
The order was awarded to Power Mech by Hindustan Zinc Limited, a major player in the zinc industry.
3. What is the contract for?
The contract involves the operation and maintenance of a 3X91.5 MW Captive Power Plant (CPP) to ensure efficient plant operations.
4. Where is the power plant located?
The Captive Power Plant is situated in Chanderiya, Chittorgarh, Rajasthan.
5. How long is the contract period?
The contract is for a duration of four years, reflecting a long-term commitment to the plant's operation.
6. What is the execution period for the contract?
The execution period for the contract is set at 48 months, which is the time frame for completing the operational and maintenance tasks.
7. When did Power Mech's trading window close?
Power Mech's trading window closed on July 1, 2024, in accordance with regulatory requirements.
8. Why was the trading window closed?
The trading window was closed to ensure compliance with SEBI regulations and to prevent any potential insider trading related to upcoming financial results.
9. What was the stock's opening price on July 18, 2024?
On July 18, 2024, Power Mech’s stock opened at ₹5,974.00 on the NSE.
10. What was the stock's highest price on July 18, 2024?
The stock reached its highest price of ₹6,080.00 during trading on July 18, 2024, reflecting strong market interest.
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