Stock Report

Ceigall expands power infrastructure portfolio, secures LOI from REC Power Development for Velgaon substation

Posted On : 2025-11-25 13:27:57( TIMEZONE : IST )

Ceigall India Ltd, one of India's fastest-growing EPC companies, has received a Letter of Intent (LOI) from REC Power Development and Consultancy Limited (RECPDCL) for the establishment of a 400/220 kV Gas Insulated Substation (GIS) in Velgaon, Maharashtra, under the TariffBased Competitive Bidding (TBCB) mechanism. The LOI marks a major milestone in strengthening the company's footprint in the high-voltage power transmission sector.

The Velgaon GIS project will be completed over a two-year period, followed by a 35-year operation and maintenance term. The company informed that Rs 58.5 crore is the annuity per year for 35 years, against EPC cost of approx. Rs 450 crore.

This means long-term recurring cash flows (via PPA) and a stable asset base, which complements more transactional EPC business. By stepping into power transmission and distribution, Ceigall is positioning itself as not just a builder, but as a sustainable infrastructure company.

Commenting on the win, Mr. Ramneek Sehgal, Chairman & Managing Director, Ceigall India Ltd, said: "We are honoured to be entrusted with the Velgaon GIS project by REC Power. This demonstrates Ceigall's engineering strengths and our commitment to delivering large-scale, future-ready infrastructure. As India rapidly upgrades its power transmission backbone, Ceigall remains focused on building assets that enhance grid reliability and meet the highest benchmarks of safety and performance. The Velgaon substation will be a crucial addition to the regional power network, and we look forward to executing it with precision and excellence."

This LOI adds to Ceigall's strong run of project wins in FY25-26, which include national highway upgrades, bridge construction, mobility corridors, and key urban infrastructure works. The Velgaon project is poised to strengthen the company's growing presence in high-value engineering segments.

Shares of Ceigall India Limited was last trading in BSE at Rs. 239.95 as compared to the previous close of Rs. 242.20. The total number of shares traded during the day was 8025 in over 602 trades.

The stock hit an intraday high of Rs. 243.90 and intraday low of 239.00. The net turnover during the day was Rs. 1928288.00.