JBM Auto shares rally 12% as PM -eBus Sewa gets Cabinet approval

Shares of JBM Auto climbed over 12 per cent in Wednesday's trade after the Cabinet approved PM-eBus Sewa for augmenting city bus operations. As per the scheme, 10,000 e-Buses will be deployed in 169 cities. Infrastructure will be upgraded in 181 cities under Green Urban Mobility, with priority to be given to cities having no organised bus service.

Tracking the development, shares of JBM Auto climbed 12.49 per cent to hit a high of Rs 1,474.45 on BSE.

As per scheme, the bus procurement will be done under PPP mode. There would be competitive bidding and the scheme will run till 2037. Out of Rs 57,613 crore, Centre to provide Rs 20,000 crore. The rest to be provided by state governments.

JBM Auto ventured into manufacturing EV buses in 2018 and is setting up EV charging stations across the country. The company has delivered over 1,000 electric buses and has installed over 110 fast chargers. It has invested Rs 800 crore in EV projects and plans to invest another Rs 600 crore over the next three years to expand its manufacturing capacity from
1,500 buses to 6,500 buses per annum, Nirmal Bang said in a July note.

JBM Auto and its units will supply 5,000 electric buses to State Transport Undertakings in Gujarat, Haryana, Delhi, Telangana and Odisha, among others. It will also supply electric buses to multiple global Fortune 500 companies, Nirmal Bang said in its EV outlook.

Also read: Infosys shares in focus on $1.6 billion deal with Liberty Global

Also read: Hot stocks on August 16, 2023: Suzlon Energy, Tejas Networks, Infosys, IRFC, IndiGo and more