SJVN shares rise 4% on bagging ₹550 cr order from Gujarat govt

Shares of SJVN Ltd surged as much as 4.2% to hit an intraday high of ₹95.45 apiece on the BSE, a day after the state-run hydropower company bagged an order worth ₹550 crore for 100 MW (megawatt) solar power project from the Gujarat Urja Vikas Nigam Limited (GUVNL). 

The scrip opened at ₹95.45, up 3.2%, as against the previous closing price of ₹91.57. At 12:37 pm, the share price of the mid-cap company was trading 1.7% higher at ₹93.13. This is in line with the broader BSE Sensex, which was trading 0.54% or 386.78 points to 71,723.58.

The company’s market capitalisation stood at ₹36,598.18 crore with more than 27.16 lakh shares exchanging hands on the BSE, as against the two-week average of 41.21 lakh shares. At present, the share price of the company is trading 7.37% higher at ₹100.40, which the company touched on December 15 this year. The company hit a 52-week low of ₹30.39 on March 27 this year.

In the past one month, three months and one year, the counter has given 13.07%, 33% and 168.23%, in returns, respectively. In the year-to-date period, the counter has given 165.54% in returns.

“The company successfully bagged the quoted capacity of 100 MW Solar Project @₹2.63/Unit on Build Own and Operate basis through a tariff-based competitive bidding process of GUVNL. This Ground Mounted Solar Project shall be developed by the Company’s wholly-owned subsidiary i.e., SJVN Green Energy Limited (“SGEL”) at a tentative cost of ₹550 crore. The project shall be developed anywhere in India and is expected 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,” the company says in a regulatory filing.

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, according to the company. 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 Shared Vision of 25,000 MW by 2030 & 50,000 MW installed capacity by 2040,” SJVN says.

In the July to September quarter, the state-run hydropower company reported a 1.3% decline in its net profit to ₹439.6 crore as against ₹445.4 crore in the same period last year.

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