Rs 1,18,826 crore order: This multibagger penny stock below Rs 100 signs MoU with Power Finance Corporation Ltd!

The stock gave multibagger returns of over 100 per cent in just 3 months and over 200 per cent in 1 year.

SJVN Ltd informed that the company and Power Finance Corporation Ltd (PFC) have signed a Memorandum of Understanding (MoU) for financial assistance to various diversified portfolios of projects including majorly renewable energy projects and thermal generation projects to be set up at total project cost of about Rs 1,18,826 crore. The term loan financial assistance is tentatively proposed at 70 per cent of the project cost, which may be increased for renewable energy projects as per project requirements.

Earlier, the company through its wholly owned subsidiary SJVN Green Energy Limited (SGEL) signed a PPA with Bhakra Beas Management Board (BBMB) for 18 MW Solar Power. The project will be developed on the land parcels of BBMB in the states of Himachal Pradesh & Punjab.

The project is scheduled to be commissioned by August 2024. The Project has been secured through open competitive bidding at a tariff of Rs 2.63 in the reverse auction organized by the Punjab Energy Development Agency. The project will generate 39.42 million Units of energy in the first year of operation and the cumulative energy generation over a period of 25 years would be about 917 million Units. The Power Purchase Agreement (PPA) for the power produced from the project has been signed with BBMB for 25 years. The commissioning of this project is expected to reduce 44,923 tonnes of carbon emissions.

SJVN, a leading CPSU under the Ministry of Power, plans to install over 10,000 MW of renewable energy capacity in three years while progressing towards its shared vision of becoming a company of 25,000 MW by 2030 and 50,000 MW by 2040.

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. This power company has a market cap of over Rs 32,000 crore with a 3-year CAGR of 52 per cent.

On Thursday, shares of SJVN Ltd plunged 9.82 per cent to Rs 73.72 per share from its previous closing of Rs 81.75. The company announced a final dividend of Rs 0.62 per equity share having a face value of Rs 10 each that when ex-dividend today.

Additionally, the sudden fall in the stock price was due to the offer for sale (OFS) announced by the company wherein it proposes to sell up to 9,66,72,962 equity shares having a face value of Rs 10 each, representing 2.46 per cent of the total issued and paid-up equity share capital of the company (Base Offer Size), on September 21, 2023 (T Day) for non-Retail Investors only and on September 22, 2023 (T+1 Day) for Retail Investors and for non-Retail Investors who choose to carry forward their unallotted bids (Offer Shares) with an option to additionally sell 9,66,72,961 equity shares. (OFS offer price is Rs 69 per share). 

The stock gave multibagger returns of over 100 per cent in just 3 months and over 200 per cent in 1 year. Investors should keep an eye on Mid-Cap power company under their watchlist.

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