Indian small-cap Urja Global’s shares jump on Tesla-deal confusion

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BENGALURU (Reuters) – Shares in Indian small-cap renewable energy company Urja Global jumped nearly 40 percent in two sessions following a deal with Gurugram-based Tesla Power India, which some investors mistook for U.S. automaker Tesla.

Urja said on June 8 that it had signed a battery manufacturing and supply agreement with Tesla Power India, which is headquartered in the US state of Delaware.

“Investors misinterpreted this deal with the real Tesla, which sent Urja stock soaring,” said Prashanth Tapsi, vice president of research at Mehta Equities.

More than 26 million shares changed hands in three sessions as of June 6 in the run-up to Urja’s announcement of the order, while about 9.4 million shares have changed hands since the announcement.

Shares of Urja are up 27.6% this year at Rs 12.70. Small cap stock is down 52% in 2022.

(Reporting by Sethuraman NR in Bengaluru; Editing by Shinjini Ganguli)

(Only the title and image for this report may have been reworked by the Business Standard team; the rest of the content is generated automatically from a shared feed.)

First published: June 12, 2023 | 11:11 p.m ist