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JBM Auto surges 10% as arm bags Rs 7,500 cr order for 1,390 electric buses

The order will be executed within 12-18 months. At 11:10 am; JBM Auto was trading 6 per cent higher at Rs 1,987, as compared to a 0.86 per cent decline in the S&P BSE Sensex

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SI Reporter Mumbai

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Shares of JBM Auto surged 10 per cent on BSE to Rs 2,060.60 in Tuesday’s intra-day trade after the company's arm bagged an order for 1,390 electric buses from Convergence Energy Services (CESL) worth nearly Rs 7,500 crore. 

In an exchange filing, JBM Auto said its subsidiary JBM Ecolife Mobility has been awarded the tender as a bus operator to  procurement, supply, operate and maintain the EV buses and develop allied electric infrastructure on gross cost contracting as part of the PM-eBus Sewa Scheme.

The order will be executed within 12-18 months. At 11:10 am; JBM Auto was trading 6 per cent higher at Rs 1,987, as compared to a 0.86 per cent decline in the S&P BSE Sensex. The stock had hit a record high of Rs 2,417.30 on February 19, 2014.

Since April, thus far in the financial year 2024, the stock price of JBM Auto has zoomed 220 per cent from a level of Rs 644 on March 31, 2023.

The company is engaged in the automotive business of manufacturing and sale of sheet metal components, tools, dies & moulds and buses including sale of spare parts, accessories & maintenance contract of buses.

In India, cities have mostly used Net Cost Contract (NCC) and Gross Cost Contract (GCC) contract models besides the owner-operator model.

The GCC model requires the operator to procure the e-buses as well as implement the charging infrastructure, which saves cash state transport undertakings (STUs) from making the initial capital investment.

The operator is paid based on the number of kilometres the buses are operated.

JBM Auto and its subsidiaries have won orders for approxnearly 5000 electric buses for supply to various states like Gujarat, Haryana, Delhi, Telangana, Orissa among others.

Different applications such as city bus, staff bus, tarmac coach, etc in both, 9 meters and 12 meters categories will be delivered for these orders.

With a healthy order book in place, JBM Auto is well poised to further consolidate its position as an end to end electric-mobility solution provider with indigenously developed vehicle technology, battery technology and charging solutions, it said.

The company is ready to serve the emerging market requirements in the electric-mobility domain, thereby, gaining new market access and expanding market share, it said in the FY23 annual report.

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First Published: Mar 19 2024 | 11:35 AM IST

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