Multibagger PSU surged 14 per cent and hit an all-time high after signing a Rs 50,000 crore MoU; do you own it?

The company secures two massive orders with the involvement of Rs 57,000 crore which is more than double its market capitalization.

Recently SJVN has caught the attention of investors after receiving orders worth Rs 7000 crore, approving the acquisition of a company, and signing an MoU worth Rs 50,000 crore. The shares of the company surged in yesterday's session by a whopping 14.05 per cent. Adding to the excitement the company received another order yesterday for five Hydro projects totaling 5097 MW in Arunachal Pradesh. The development of these five projects will involve an investment of more than Rs 50,000 crores.

SJVN Limited is a government-owned company engaged in the generation and transmission of hydroelectric power. Yesterday, at BSE, the script opened at Rs 52.65 and reached an all-time high of Rs 59.80, closing at Rs 57.14, up by 14.05 per cent. In the past month the company's shares have risen by 36.19 per cent and in the last year it has provided a multibagger return of 101.05 per cent. The company has a market capitalization of around Rs 22,450 crore.

Yesterday, the company reported that the Government of Arunachal Pradesh has allotted five projects, totaling 5097 MW, to SJVN. All the five projects are located in Dibang Basin, which will result in optimal resource utilization and timely completion of projects. The development of these projects will involve an investment of more than Rs 50,000 crores.

On July 22, 2023, SJVN's subsidiary, SJVN Green Energy Limited (SGEL) received a Letter of Intent from Punjab State Power Corporation Limited (PSPCL) for 1200 MW Solar Power procurement. SGEL will develop 1000 MW anywhere in India and 200 MW in Punjab under RFS provisions. The project will be on a BOO basis with an estimated cost of Rs 7000 crore.

On July 21, 2023, SJVN signed an MoU with REC Limited for financial assistance of up to Rs 50,000 crore. The funds will support the development of various projects focusing on both conventional and renewable energy sources. REC will also back initiatives involving cutting-edge technologies like Battery Storage, E-Vehicles, Green Hydrogen/Ammonia, and more. The MoU covers the construction of evacuation and transmission projects, ensuring efficient distribution of generated power.

SJVN has set an ambitious target of achieving a 25 GW generation capacity by the end of the decade, with over half of it coming from renewable sources. This reflects the company's strong commitment to advancing clean energy solutions and environmental sustainability.

In its meeting on July 22, 2023, SJVN's board approved the acquisition of 77,30,227 equity shares in Cross Border Power Transmission Company Limited (CPTC) at an average price of Rs 24.05 per share. The acquisition will be completed in cash and the total value of the deal is approximately Rs 18.60 crore.

Investors should keep a close eye on this trending PSU stock.

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