JBM Auto Share Price Rises as Subsidiary Secures Electric Bus Contract

JBM Auto Limited (JBMA) witnessed a 4.62% rise in its share price on the National Stock Exchange (NSE), opening at ₹1,175 on December 23, 2024. The positive sentiment follows an announcement regarding a substantial contract secured by its subsidiary, JBM Ecolife Mobility Private Limited.

Key Highlights of the Contract

The contract, valued at approximately ₹1,800 crore, involves the procurement, operation, and maintenance of 343 electric buses. These buses will serve Ahmedabad’s Bus Rapid Transit System (BRTS) and the Ahmedabad Municipal Transport Service. Additionally, the agreement includes services for some leading corporate clients.

Domestic Focus with a Green Vision

The contract, awarded by Ahmedabad Janmarg Limited and other corporates, emphasises JBMA’s focus on promoting sustainable mobility solutions within India. It will operate under a Gross Cost Contract (GCC) model, ensuring predictable revenue streams and long-term viability.

Execution Timeline

The project is expected to be completed within a year, showcasing JBMA’s efficiency and commitment to delivering timely solutions.

Financial and Strategic Impact

This development marks a significant step in JBM Ecolife Mobility’s growth trajectory, potentially strengthening its position in India’s electric vehicle (EV) market. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.