An announcement that TD Power Systems Ltd (TDPS) has signed a technology transfer agreement with Siemens AG propelled the stock to just 10 per cent short of its 52-week high in the stock exchanges today.

The shares of TDPS spurted 14.73 per cent or Rs 38 to Rs 296 on the BSE with about 89,500 shares being traded. On the NSE, the stock zoomed to close at Rs 294.80, a gain of Rs 27.25 or 10.19 per cent, with about 1.67 lakh shares changing hands.

Since January 25, when it hit its 52-week low of Rs 201.25, the stock has gained nearly 50 per cent. Its current price is just about 10 per cent lower than its 52-week high of Rs 321.45 (on Sept 14, 2011) in the NSE.

Under this long term license agreement, TDPS, which manufactures AC generators and executes captive and independent power projects, would receive from Siemens the know-how for manufacture of industrial, air-cooled, 2-pole AC generators in the range of 74 MVA to 250 MVA in India. The generators would be produced at its facility in Dabaspet Industrial Area near Bangalore and commercial production would begin in within two years. steady

According to an analyst with Mumbai-based brokerage, the tie-up will result in ‘stable' income for the company in the long-run.

TDPS already has been manufacturing smaller capacity generators under license from Siemens for the past four years. It has agreements with many international power equipment producers and has been sourcing technologies for producing generators. Its in-house product development team worked with its partners in developing new products at lesser cost, improving quality and design, the company said in a statement to the stock exchanges.

The company reported a net profit of Rs 11.42 crore for the December quarter on a revenue of Rs 135.21 crore.

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