BHEL Share Price Soars by 14% After Adani Power Deal Announcement 🚀
After the Lok Sabha election results, it seems almost certain that the BJP-led NDA government will come to power in the center. Riding on the success of the NDA government, Adani Group’s shares have also seen a surge. Not only that, but the shares of the company with which Adani Group has signed an agreement are also showing strong growth. Even the shares of the government company Bharat Heavy Electricals Limited (BHEL) have witnessed a rapid rise.
Within minutes of the market opening on Thursday, BHEL’s shares recorded a surge of more than 14%. Adani Power, a unit of the Adani Group, had announced on June 5 that it has awarded a contract worth Rs 3,500 crore to BHEL for setting up a thermal power plant in Raipur, Chhattisgarh. The next day, on June 6, investors flocked to buy BHEL shares, causing the company’s share price to be up by 14.60% in just a few minutes. The company’s share was trading at Rs 292.45 on the BSE and Rs 292.35 on the NSE. Adani Power’s share also surged by 8% to reach Rs 782.30.
BHEL informed the stock exchanges on Wednesday that Adani Power has awarded it a contract to build two power plants with a capacity of 800-800 megawatts. The company aims to supply boilers, turbines, generators, and supercritical technology for the project. The work on the first unit is expected to be completed in 35 months, while the second unit will be completed in 41 months. On Monday (June 10, 2024), the share was trading at Rs 286, up by 0.11%.
Meanwhile, brokerage house Nuveam has predicted that the company’s share price will surpass Rs 400 in the coming days. This is because there will be a boom in the thermal power sector in the next 2-3 years, and the company will receive several contracts. Many projects are already in the pipeline, which will benefit the company’s shares. ICICI Securities has given a target price of Rs 370.
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