FII bought 2,68,31,848 shares: LIC-backed power generation stock incorporated a new joint venture company; details inside!

The stock gave multibagger returns of 277 per cent in just 1 year while the BSE Sensex Index is up by 23 per cent.

SJVN Limited, a government-owned company (Mini Ratna & Schedule "A"), has announced that its wholly-owned subsidiary, SJVN Green Energy Limited, has partnered with Assam Power Distribution Company Limited to establish a new joint venture company named SGEL Assam Renewable Energy Limited. This new company, with an authorized capital of Rs 1,000 crore, will focus on renewable energy generation, including hydropower plants. It's important to note that SJVN Green Energy Limited's involvement qualifies as a related party transaction, but besides that, there are no other connections between the promoter/promoter group and the acquired entity. The venture is expected to operate within the renewable energy industry and has received necessary approvals from various government bodies. SJVN Green Energy Limited will hold a majority stake (51 per cent) in the joint venture.

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.

On Friday, shares of SJVN Ltd plunged 2.85 per cent to Rs 124.20 per share with an intraday high of Rs 126.65 per share and an intraday low of Rs 122.60. This company has a market cap of over Rs 48,000 crore with a 3-year CAGR of 50 per cent. The stock gave multibagger returns of 277 per cent in just 1 year while the BSE Sensex Index is up by 23 per cent. Investors should keep an eye on this power stock.

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