JBM Auto’s shares jumped by 10% on the Bombay Stock Exchange (BSE) to Rs 2,060.60 during Tuesday’s trading session following news that its subsidiary, JBM Ecolife Mobility, secured an order from Convergence Energy Services (CESL) for 1,390 electric buses valued at nearly Rs 7,500 crore.
According to an official statement filed with the exchange, JBM Auto’s subsidiary won the bid to supply, operate, and maintain these electric buses as part of the PM-eBus Sewa Scheme, with the responsibility to develop associated electric infrastructure under a gross cost contracting arrangement.
The order is expected to be completed within 12-18 months. As of 11:10 am, JBM Auto was trading 6% higher at Rs 1,987, while the S&P BSE Sensex had decreased by 0.86%. The stock had previously reached a record high of Rs 2,417.30 on February 19, 2014.
Since April of the financial year 2024, JBM Auto’s stock price has surged by 220%, rising from Rs 644 on March 31, 2023.
The company operates in the automotive sector, manufacturing and selling sheet metal components, tools, dies & moulds, and buses, along with spare parts, accessories, and maintenance contracts for buses.
In India, cities primarily use Net Cost Contract (NCC) and Gross Cost Contract (GCC) models, along with the owner-operator model. The GCC model requires the operator to acquire e-buses and establish charging infrastructure, thus relieving cash-strapped state transport undertakings (STUs) from the initial capital investment burden.
The operator receives payment based on the distance the buses travel. JBM Auto and its subsidiaries have secured orders for approximately 5000 electric buses to supply to various states including Gujarat, Haryana, Delhi, Telangana, and Orissa. These orders encompass a variety of applications such as city buses, staff buses, and tarmac coaches, in both 9 meters and 12 meters categories.
With a robust order backlog, JBM Auto is set to strengthen its position as a comprehensive electric mobility solution provider, offering domestically developed vehicle technology, battery technology, and charging solutions.
In its FY23 annual report, the company expressed readiness to meet the growing demands in the electric mobility sector, aiming to tap into new markets and increase its market presence.
You might also be interested in – Olectra Greentech surges 10% following a ₹4,000-crore order win for electric buses
1 comment
[…] You might also be interested in – JBM AUTO EXPERIENCES A BOOST AS IT SECURES A MASSIVE ORDER WORTH RS 7,500 CRORE FOR 1,390 ELECTRIC B… […]