Olectra Share Rises 27% (Rs.110) as TSRTC announced to buy hundreds of Electric buse

TSRTC had announced how the tender process of 300 electric buses is ongoing and how the organisation has decided to replace all the Diesel buses in Hyderabad with that of Electric ones. As the news of Telangana RTC’s decision of going aggressively on buying electric buses has spread out, the share price of olectra has seen a sharp rise over 3 days. Though it is not officially disclosed that TSRTC is going to buy hundreds of electric buses from Olectra , the share price of the company owned by the Megha Krishna Reddy and family has seen sudden growth when entire market is facing downfall.Olectra Share price had seen sudden decline of over 40% in the last 6 months where investors lost lot of money but saw a sudden increase since Thursday. However, the announcement of Hydrogen Buses manufacturing too took place in the same week.

If it has to be considered that Reliance industries -Olectra Hydrogen bus had contributed the share hike, then Why Reliance Industries share price has not seen the same rise?. Reliance has lost more than 2% during the same time .

Reasons why Olectra share rose 27% when entire Indian market is down

Olectra is owned majorly by the MEIL company owners. Megha Krishna Reddy family and others own majority of the shares in the company. Since the Telugu states public are aware of how the Megha Reddys are known to bag most of the big contracts by the Telangana government ( Note that mighty Kaleshwaram, Mission Bhagheeratha , watering plants in GHMC etc… Monsterous contracts worth thousands of crores are bagged by MEIL ) , public have assumed that most of the buses would be supplied naturally by the MEIL.

The unofficially official media house owned by the TRS party chief KCR confirmed the news by twitter that entire Diesel fleet of Hyderabad RTC would be replaced by Electric.

There are many allegations by famous Journalists across Telangana like Teenmaar mallanna, Tolivelugu Raghu etc… and many Congress leaders like Jakka Judson that Telangana government can go any far to bag contracts to their close allies like Megha Krishna Reddy’s firms and My home Rameshwar rao. Majority of the Infrastructure works were allotted already to the MEIL company which earned thousands of crores in the last 8 years. Infact, the MEIL Krishna Reddy became one of the richest Telugu person after bagging the Kaleshwaram project.

Now since TSRTC announced to replace over 800+ Hyderabad diesel buses with Electric ones the public blindly assumed that it is olectra which gonna get most of the numbers.

Although it appeared that Olectra tie with Reliance in making new Hydrogen based Buses has lead to this sudden surge, the real fact is that instant result fetching for the company is supplying new electric buses to the Telangana RTC as per the Telugu states public. There are many mightier collaborations inthe indian markets recently and this future presumption of making money cannot given 27% hike for any company in 2-3 days. Investor rely mostly on instant results and Telangana RTC decision of replacing all diesel vehicles with that of electric buses is surely to fetch some hefty amount for the Electric bus manufacturer.