H.G. Infra Engineering Jumps 5% After Winning LOI for ₹1,575 Crore Power Transmission Project in Uttar Pradesh

Quick Take

• H.G. Infra Engineering shares surged approximately 5% after receiving a Letter of Intent from REC Power Development and Consultancy for a ₹1,575 crore power transmission project in Uttar Pradesh
• The project involves constructing two 220/132/33 kV substations at Ranipur (Mau) and Chunar (Mirzapur) along with associated transmission lines, secured via tariff-based competitive bidding
• The LOI win strengthens H.G. Infra's presence in the power transmission sector and adds significant order backlog, reinforcing the company's diversification beyond its core road EPC business

H.G. Infra Engineering Limited received a Letter of Intent from REC Power Development and Consultancy Limited (RECPDCL) for the development of two high-voltage substations — 220/132/33 kV AIS substations at Ranipur in Mau district and Chunar in Mirzapur district — along with associated transmission line infrastructure in Uttar Pradesh. The project was secured through tariff-based competitive bidding, India's standard procurement framework for regulated power transmission infrastructure, with a contract value of approximately ₹1,575 crore. The 5% stock price reaction reflects market recognition that this order represents meaningful backlog expansion and sector diversification for H.G. Infra.

H.G. Infra Engineering has historically been primarily known as a road EPC contractor with a strong record in National Highway Authority of India (NHAI) and state highway projects. The power transmission LOI signals a deliberate strategic diversification into India's rapidly expanding power sector infrastructure — a segment that benefits from the government's ambitious renewable energy capacity addition targets and the associated grid strengthening requirements. RECPDCL is a high-quality project management consultancy that typically oversees complex transmission projects, providing quality assurance to the underlying contract value.

Watch H.G. Infra Engineering's next quarterly order book disclosure — the ₹1,575 crore power transmission LOI and the speed of conversion from LOI to formal contract award will determine the backlog expansion quantum. India's power ministry capex announcements for grid modernisation and renewable energy integration transmission corridors will indicate the size of the addressable market for H.G. Infra's expanded power sector capabilities. Analyst target price revisions incorporating the diversified order book will quantify the re-rating potential from the strategic sector addition.

Sources: tradebrains.in

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