Ceigall India shares rose as much as 3.54% to hit an intraday high of Rs 359.85 on Friday after the company received a Letter of Intent (LoI) from REC Power Development and Consultancy Limited for a major power transmission project.

The order marks a significant addition to Ceigall India’s project pipeline, with the total project cost estimated at around Rs 5,300 crore, including GST.

Under the LoI, Ceigall India will undertake the “Common Transmission System for evacuation of power from Lakadia (Phase-II: 7.5 GW), Jam Khambhaliya (Phase-II: 5.5 GW) and Jamnagar (Phase-I: 1 GW) – Part-B” project.

The project involves developing a 765/400 kV AIS substation along with around 300 km of transmission lines under a tariff-based contract agreement.

The company will have 36 months to execute the project, followed by an operational period of 35 years from the scheduled commissioning date.

The project carries annual transmission charges of Rs 608.67 crore for 35 years, according to the company’s disclosure.

Ceigall India said the order was awarded by a domestic entity and confirmed that neither the promoter/promoter group nor group companies have any interest in REC Power Development and Consultancy. The contract also does not fall under related-party transactions.

The latest order strengthens Ceigall India’s presence in the power transmission space and adds a sizeable long-term project to its order pipeline. The combination of a large project cost and a 35-year operational period provides the company with significant visibility over the project lifecycle.

Share price and technical indicators

Following the announcement, Ceigall India shares climbed nearly 4%, reflecting investor interest in the sizeable transmission opportunity. The company currently has a market capitalisation of Rs 6,081 crore, while its 52-week high stands at Rs 405.70.

On the technical front, Ceigall India’s 14-day Relative Strength Index (RSI) stood at 61.0, indicating positive momentum. An RSI below 30 is generally considered oversold, while a reading above 70 signals overbought conditions.

The stock’s technical setup remains bullish, with Ceigall India trading above all eight of its key Simple Moving Averages (SMAs).