SJVN shares rise 4% on bagging 200 MW solar project

Shares of SJVN, formerly known as Satluj Jal Vidyut Nigam, climbed nearly 4% in early trade on Monday after the hydroelectric power generation company said that its arm secured a 200 megawatts (MW) solar project. The PSU stock has fallen over 26% in the last one month as investors booked profit after the counter touched its 52-week high of ₹170.45 on February 5, 2024.

Snapping a two-session losing streak, SJVN shares opened higher at ₹123.85, up 2.4% against the previous closing price of ₹120.90 on the BSE. Extending opening gains, the power stock has risen as much as 3.9% to ₹125.65, while the market capitalisation climbed to ₹48,300 crore.

At the current level, SJVN's share price has surged more than 300% against its 52-week low of ₹30.39 touched on March 27, 2023. The largecap stock has delivered 273% returns in one year; 89% in six months; and 32% year-to-date (YTD).  SJVN, which made its market debut in May 2010, had a disappointing run at Dalal Street in the first 13 years, with the shares hovering around its IPO price of ₹26 per share. The stock, however, gained momentum in the last one and turned multibagger on the back of strong order flows and investors’ growing appetite for PSU stocks.  

SJVN in an exchange filing on March 3, 2024, said that its wholly owned subsidiary, SJVN Green Energy Limited (SGEL), participated for 200 MW capacity in the tariff based competitive bidding conducted by Gujarat Urja Vikas Nigam Limited (GUVNL) for development of solar power projects in the 1,125 MW GSECL Solar Park at Khavda, Gujarat.

“e-RA for this bidding was conducted by GUVNL on 02.02.2024 and SGEL bagged the full bid capacity of 200 MW at a tariff of ₹2.66 per unit,” the filing said.

As per the release, this 200 MW solar power project is to be developed on build own and operate (BOO) basis. The tentative cost of construction and development of this project is pegged to be around ₹1,100 crore.

The project is expected to generate about 504 million units (MUs) in the first year and the cumulative energy generation over 25 years would be about 11,732 MUs.

The release notes that the project will be commissioned in 18 months from the date of signing of the power purchase agreement (PPA). The PPA will be signed between GUVNL and SGEL for 25 years.

The commissioning of this project is expected to reduce 5,74,868 tonnes of carbon emission and would contribute to the government of India’s mission of reduction in carbon emission.

“The company is on rapid progression to achieve its shared vision of 25,000 MW by 2030 & 50,000 MW by 2040. This shared vision has been formulated in sync with the commitment of the Government of India of generating 50% energy from non-fossil fuel-based energy resources by 2030,” the release highlights.

As on June 30, 2023, SJVN, a joint venture of the government of India and the Government of Himachal Pradesh, had an installed capacity of 2,091.5 MW, which includes the Nathpa Jhakri hydro plant (1,500 MW), the Rampur hydro plant (412 MW), the Khirvire wind project (47.6 MW), the Sadla solar project (50 MW), the Charanka solar project (5.6 MW), the Parasan solar power station (75 MW), and a grid connected solar plant of 1.3 MW. The ‘Miniratna’ company also operates an 86-km 400 kV DC line across the India-Nepal border through the JV mode.

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