BENGALURU (Reuters) – Shares of Indian small-cap renewable energy company Urja Global jumped nearly 40% in two sessions following a deal with Gurugram-based Tesla Power India, which some investors mistook for U.S. automaker Tesla.
Urja on June 8 said it signed an agreement to manufacture and supply batteries with Tesla Power India, which has global headquarters in Delaware in the United States.
“Investors misinterpreted this deal with the real Tesla, leading Urja stock to rally,” said Prashanth Tapse, vice president of research at Mehta Equities.
Over 26 million shares were traded in three sessions starting June 6 in the run up to the order announcement by Urja, while about 9.4 million shares have been traded since the announcement.
Urja shares were up 27.6% this year at 12.70 rupees. The small-cap stock was down 52% in 2022.
(Reporting by Sethuraman NR in Bengaluru; Editing by Shinjini Ganguli)
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