FII bought 2,68,31,848 shares: LIC-backed power generation stock forms a joint venture with Assam Power Distribution Company Ltd

The stock gave multibagger returns of 300 per cent in just 1 year while the BSE Sensex Index is up by 25 per cent.

Satluj Jal Vidyut Nigam Limited (SJVN Ltd) hereby notifies that its wholly-owned subsidiary, SJVN Green Energy Limited (SGEL), has officially entered a joint venture cum shareholders agreement with Assam Power Distribution Company Limited (APDCL) on April 8, 2024. The agreement, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 along with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13th, 2023, entails several key details. Firstly, the parties involved are SGEL and APDCL.

Secondly, the agreement's purpose is to establish terms for the formation of a Joint Venture Company aimed at developing Renewable Energy Projects/Parks within the APDCL/SGEL or SJVN command area, as well as on a pan-India basis. Thirdly, there is no shareholding initially allocated in the entity with which the agreement is made. Fourthly, significant terms include special rights such as the appointment of directors, a 51:49 shareholding structure, and pre-emptive rights in case of share issuance. Fifthly, SGEL's relationship with SJVN Ltd is outlined as it is a wholly-owned subsidiary.

Sixthly, the transaction is not classified as a related party transaction, and it's not conducted at arm's length. Seventhly, SGEL will subscribe to a 51% shareholding in the joint venture Company in case of share issuance. Eighthly, there are no additional disclosures pertinent to this agreement. Lastly, in case of any termination or amendment, relevant details will be disclosed subsequently.

Power from this project is for Govt use either directly or through Discom. 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 to generate 50 per cent of energy from non-fossil fuel-based energy resources by 2030.

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SJVN is engaged in the business of electricity generation. The company is also engaged in the business of providing consultancy for hydropower projects. The company has been maintaining a healthy dividend payout of 72 per cent with a dividend yield of Rs 4.38 per cent. The company reported positive numbers in its Quarterly Results (Q3FY24) & and half-yearly results (9MFY24) for the year ended September 30, 2023. As of March 2024, Life Insurance Corporation of India (LIC) owns 1.73 per cent while FIIs bought 2,68,31,848 shares and increased their stake to 2.36 per cent compared to 1.68 per cent in December 2023.

Today, shares of SJVN Ltd plunged 3.3 per cent to Rs 130.6 per share with an intraday high of Rs 135.70 per share and an intraday low of Rs 130. This company has a market cap of over Rs 50,000 crore with a 3-year CAGR of 50 per cent. The stock gave multibagger returns of 300 per cent in just 1 year while the BSE Sensex Index is up by 25 per cent. Investors should keep an eye on this power stock.

Disclaimer: The article is for informational purposes only and not investment advice.