LIC-Backed PSU Signs MoU for 900 MW Upper Karnali Hydro Electric Project in Nepal – LIC Boosts Stake Over Last 2 Quarters!
The company’s shares have delivered an impressive multibagger return of over 300 per cent to its shareholders.
SJVN Ltd, engaged in electricity generation and providing consultancy for hydro-power projects, has signed a Memorandum of Understanding (MoU) with GMR Upper Karnali Hydro Power Limited and IREDA for the development of the 900 MW Upper Karnali Hydro Electric Project in Nepal.
The project will be executed through a joint venture, with SJVN and GMR each holding a 34 per cent stake, IREDA holding 5 per cent, and the remaining equity to be held by the Nepal Electricity Authority (NEA). The project will be developed on a Build-Own-Operate-Transfer (BOOT) basis with a 25-year concession period following commissioning. The estimated project cost is Rs 9,100 crore, with funding proposed at a 70:30 debt-to-equity ratio.
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On Wednesday, the shares of SJVN Ltd closed at around Rs 131.70 per share on the BSE. The company’s current market capitalization stands at Rs 51,755 crore. Additionally, the shares have delivered an impressive return of over 320 per cent in the past 2 years only.
As per the Quarterly Results, in the Q1 FY25, SJVN recorded a revenue of Rs 870 crore compared to Rs 675 crore. The operating profit stood at Rs 646 crore. The net profit stood at Rs 357 crore compared to a profit of Rs 272 crore. Looking at the annual performance, the company generated a revenue of Rs 2579 crore in FY24. The operating profit for FY24 was Rs 1843 crore with a net profit of Rs 911 crore compared to a net profit of Rs 1359 crore in FY23.
According to the shareholding pattern of the company, the promoters hold a significant 81.85 per cent stake. Public investors own 11.83 per cent of the shares, while Foreign Institutional Investors (FIIs) hold 2.40 per cent and Domestic Institutional Investors (DIIs) own 3.94 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.