PowerGrid shares fell 2.5% in early trade on Friday after the Telecom Department asked the company to pay Rs 13,614 cr on account of the licence fee for FY07-10, which includes licence fee, interest, penalty & interest on the penalty. Later, the share recovered from losses and closed higher, on back of the broader rally in the power sector.
"This is to inform that Department of Telecommunication vide its revised assessment order dated 22.05.2020 in respect of NLD (national long distance) license for the FYs 2006-07 to 2009-10 has asked Power Grid to pay Rs 13,613.66 crore on account of License Fee," the company said in a filing with exchanges on Thursday.
Following the update, PowerGrid shares had fallen 2.57% lower to the day's low of Rs 164.85 in early trade. However, the stock gained momentum by the first hour of the session and rose 3.04% to the intraday high of Rs 174.35, compared to its earlier close of Rs 169.20.
PowerGrid shares have gained 4.29% in the last 2 days. The stock has risen 8.85% in the last one week and 4.83% in the one month.
PowerGrid share price trades higher than its 5, 20 and 50-day but lower than 100 and 200-day moving averages. Market capitalisation of the firm stood at Rs 88,335 crore as of today.
PowerGrid had filed an application on 23 January before the Supreme Court for clarification or modification of its order.
Shares of PowerGrid closed 1.36% higher at Rs 171.50 on BSE today.