Punj Lloyd gains on signing pact to sell solar power to NTPC Vidyut

Punj Lloyd rose 2.39% at Rs 105.10 at 11:15 IST on BSE after the company agreed to sell power from a proposed 5 megawatt solar plant in Rajasthan to NTPC Vidyut Vyapar Nigam for 25 years.

The announcement was made after trading hours on Wednesday, 12 January 2011.



Meanwhile, the BSE Sensex was down 111.76 points, or 0.57%, to 19,422.34.

On BSE, 4.05 lakh shares were traded in the counter as against an average daily volume of 9.90 lakh shares in the past one quarter.

The stock hit a high of Rs 105.40 and a low of Rs 102.90 so far during the day. The stock had hit a 52-week high of Rs 226.45 on 15 January 2010 and a 52-week low of Rs 81 on 26 November 2010.

The stock had underperformed the market over the past one month till 12 January 2011, falling 0.77% compared with the Sensex's 0.13% rise. The scrip had also underperformed the market in past one quarter, falling 23.48% as against 3.31% decline in the Sensex.

The mid-cap engineering and construction company has an equity capital of Rs 66.42 crore. Face value per share is Rs 2.

This project is being set up as part of Jawaharlal Nehru National Solar Mission (JNNSM), a programme under the aegis of Ministry of New & Renewable Energy and Ministry of Power, the company said in a statement.

The power plant is developed by Punj Lloyd Solar Power, a Special Purpose Vehicle, at Phalodi area of Jodhpur district in Rajasthan, the company said adding that the plant will be commissioned in a period of 12 months.

On a consolidated basis, Punj Lloyd's net profit slumped 54.7% to Rs 23.92 crore on 31.9% decline in net sales to Rs 1958 crore in Q2 September 2010 over Q2 September 2009.