SJVN stock jumps 4.4% after company bags 100 MW solar project
Shares of SJVN surged 4.42% to ₹95.60 apiece in early trade on Wednesday following the company’s acquisition of a significant solar project. In a filing to the exchange on Tuesday, the company announced that it had secured a 100 MW solar power project through an e-reverse auction conducted by Gujarat Urja Vikas Nigam Limited (“GUVNL”).
SJVN successfully bagged the quoted capacity of the 100 MW solar project at ₹2.63/unit on a build-own-operate basis through the tariff-based competitive bidding process of GUVNL. The company specified that the ground-mounted solar project would be developed by its wholly-owned subsidiary, SJVN Green Energy Limited (“SGEL”), at an estimated cost of ₹550 crore.
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The company will develop this project anywhere in India and the company expects it to be commissioned within 18 months from the date of signing of the Power Purchase Agreement (“PPA”). The PPA shall be signed between SGEL & GUVNL for 25 years.
According to the company, the project is expected to generate about 252 million units in its first year of commissioning, and the cumulative energy generation over a period of 25 years would be about 5,866 million units. Further, the commissioning of this solar project is anticipated to reduce 2,87,434 tonnes of carbon emissions.
“With the addition of this project, the company’s solar & wind portfolio stands at 5,090.5 MW, out of which 179.5 MW is under operation, 1,860 MW is under construction, and 3,051 MW is under various stages of implementation. The company is marching forward with vigour to achieve its mission of 12,000 MW by 2026 and its shared vision of 25,000 MW by 2030 & 50,000 MW installed capacity by 2040,” the company said.
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SJVN is a Mini Ratna, Category-I, and Schedule-A’ CPSE under the administrative control of the Ministry of Power, Govt. of India. It was incorporated on May 24, 1988, as a joint venture of the Government of India (GOI) and the Government of Himachal Pradesh (GOHP).
As of September 30, 2023, the Government of India owned a 59.92% stake in the company, while 26.85% was held by the Government of Himachal Pradesh and the rest (13.23%) by the public.
Meanwhile, the shares have been riding high on Dalal Street, buoyed by a series of significant order wins and strategic partnerships. From its March 2023 low of ₹30.40 apiece, the stock has zoomed to the current level of ₹93.60, generating a return of 208%.
At 11:15 AM, the stock was trading with a gain of 2.29% at ₹93.65 apiece.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 27 Dec 2023, 11:54 AM IST
