NHPC shares rise 2% on fundraising plan

Shares of hydropower company NHPC climbed over 2% in early trade on Thursday after the state-owned company said its board will meet next week to discuss a fundraising proposal. The board will consider the proposal for raising debt during financial years 2023-24 and 2024-25, it says in an exchange filing.

“A meeting of the board of directors of the company is scheduled to be held on Wednesday, 27th March, 2024 to consider the proposal for raising of debt during financial years 2023-24 and 2024-25,” NHPC says in a regulatory filing on Wednesday.

Reacting to the news, NHPC shares opened higher for the second straight session at ₹83.90, up 1.2% against the previous closing price of ₹82.92 on the BSE. In the early trade, the PSU stock gained as much as 2.7% to hit a high of ₹85.15, while the market capitalisation rose to ₹85,081 crore.

At the current level, NHPC shares trade 36% lower than its all-time high of ₹115.84 touched February 5, 2024, while it surged 125% against its 52-week low of ₹38.70 hit on March 28, 2023. The PSU stock has risen 111% in the past one year; 61% in six months; 28% in the calendar year 2024; and 32% in a month. The counter has added 47% in the calendar year 2024. The stock has fallen 9% in a month as the investors resorted to profit booking after it touched its record high on February 5.

Last week, NHPC had informed exchanges that it received a letter of intent from Gujarat Urja Vikas Nigam Limited (GUVNL) for a 200 megawatt (MW) capacity solar power Project within 1125 MW GSECL’s RE Park at Khavda. The estimated financial cost for the solar power project would be around ₹846.66 crore, it says in a BSE filing on March 14.

In a separate development, Prime Minister Narendra Modi on March 4 laid the foundation stone for 1,200 MW Jalaun Ultra Renewable Energy Power Park located in Orai and Madhogarh Tehsil of District Jalaun, Uttar Pradesh. The solar park will be developed by Bundelkhand Saur Urja Limited, a subsidiary company, with an investment of ₹796.96 crore, subject to investment approval. The park is proposed to be constructed in 24 months from the investment approval and will generate about 2,400 MUs electricity every year.

Adding to it, PM Modi also laid the foundation for the 300 MW solar power plant in Rajasthan last month. The solar power plant in Bikaner will help the government in achieving the renewable energy capacity addition target and the goal of net zero by the year 2070. The project will be set up by NHPC under the government of India’s central public sector undertakings (CPSU) Scheme, phase-II, tranche-III with a total investment of over ₹1,732 crore.

Besides, NHPC also declared an interim dividend at the rate of 14%, or ₹1.40 per share, on the face value of ₹10 each for FY24. The board had fixed February 22, 2024, as the record date to ascertain the eligibility of shareholders for payment of the interim dividend. In the past 12 months, the PSU has declared a total equity dividend of ₹1.85, including ₹0.45 in August 2023 and ₹1.4 in February 2023, while it has paid 23 dividends since September 2010.

In the third quarter ended December 31, 2023, NHPC reported a 26.77% decline in its consolidated net profit at ₹491.90 crore as against ₹671.67 crore in the corresponding period last fiscal. Revenue from operation dropped 20.42% to ₹2,055.50 crore as against ₹2,582.76 crore in Q3 FY23.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)