Olectra shares crash 12% as big order cancellation looms; key details
The Olectra Greentech stock fell 12.29 per cent to hit a low of Rs 1,180 on BSE. The scrip though recovered some ground and was later trading at Rs 1,257.05, still down 6.56 per cent .
- May 27, 2025,
- Updated May 27, 2025 9:27 AM IST
Shares of Olectra Greentech Ltd, promoted by Megha Engineering and Infrastructure, crashed over 12 per cent in Tuesday morning as the Maharashtra Transport Minister Pratap Baburao Sarnaik called for the cancellation of a major electric bus tender awarded to the company. The minister cited the company’s failure to meet delivery deadlines as the reason.
The stock fell 12.29 per cent to hit a low of Rs 1,180 on BSE. The scrip though recovered some ground and was later trading at Rs 1,257.05, still down 6.56 per cent .
Back in July 2023, the Hyderabad-based company had informed stock exchanges that a consortium comprising Olectra Greentech and Evey Trans Private Limited (EVEY) received a Letter of Intent from the Maharashtra State Road Transport Corporation (MSRTC). The contract involved the supply, operation, and maintenance of 5,150 electric buses, along with the associated electrical and civil infrastructure, under a gross cost contract model. EVEY was to procure the buses from Olectra, with deliveries scheduled over a 24-month period.
The estimated value of the supply contract was around Rs 10,000 crore, and Olectra was also responsible for the maintenance of these buses during the contract term. In its annual report, the company described it as the largest e-bus order globally. As of March 31, 2024, Olectra's electric bus order book stood at 10,969 units, with expectations for further growth.
Olectra shares had closed at Rs 1,348.10 on Monday, up 4.23 per cent, and have delivered a staggering 2,252.71 per cent return over the past five years. However, the stock has lost about 25 per cent of its value over the last year.
A meeting was held at the ST Corporation headquarters to discuss the issue. During the meeting, the minister stated that the company had been inactive in supplying the 5,150 leased electric buses. As a result, it was directed that action be taken to cancel the tender agreement between the ST Corporation and the company.
Minister Sarnaik posted on X (formerly Twitter) that Olectra was given a revised deadline of May 22 to deliver 1,000 buses, but none were supplied. This raised concerns about the company’s ability to fulfill future deliveries, prompting
Shares of Olectra Greentech Ltd, promoted by Megha Engineering and Infrastructure, crashed over 12 per cent in Tuesday morning as the Maharashtra Transport Minister Pratap Baburao Sarnaik called for the cancellation of a major electric bus tender awarded to the company. The minister cited the company’s failure to meet delivery deadlines as the reason.
The stock fell 12.29 per cent to hit a low of Rs 1,180 on BSE. The scrip though recovered some ground and was later trading at Rs 1,257.05, still down 6.56 per cent .
Back in July 2023, the Hyderabad-based company had informed stock exchanges that a consortium comprising Olectra Greentech and Evey Trans Private Limited (EVEY) received a Letter of Intent from the Maharashtra State Road Transport Corporation (MSRTC). The contract involved the supply, operation, and maintenance of 5,150 electric buses, along with the associated electrical and civil infrastructure, under a gross cost contract model. EVEY was to procure the buses from Olectra, with deliveries scheduled over a 24-month period.
The estimated value of the supply contract was around Rs 10,000 crore, and Olectra was also responsible for the maintenance of these buses during the contract term. In its annual report, the company described it as the largest e-bus order globally. As of March 31, 2024, Olectra's electric bus order book stood at 10,969 units, with expectations for further growth.
Olectra shares had closed at Rs 1,348.10 on Monday, up 4.23 per cent, and have delivered a staggering 2,252.71 per cent return over the past five years. However, the stock has lost about 25 per cent of its value over the last year.
A meeting was held at the ST Corporation headquarters to discuss the issue. During the meeting, the minister stated that the company had been inactive in supplying the 5,150 leased electric buses. As a result, it was directed that action be taken to cancel the tender agreement between the ST Corporation and the company.
Minister Sarnaik posted on X (formerly Twitter) that Olectra was given a revised deadline of May 22 to deliver 1,000 buses, but none were supplied. This raised concerns about the company’s ability to fulfill future deliveries, prompting