Indian small-cap Urja Global jumps on Tesla-deal confusion

Urja Global

12/06/2023 15:23

BENGALURU, June 12 (Reuters) - Shares of Indian
small-cap renewable energy company Urja Global  URJA.NS  jumped
nearly 40% in two sessions following a deal with Gurugram-based
Tesla Power India, which some investors mistook for U.S.
automaker Tesla  TSLA.O .
    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)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))