Multibagger PSU’s inks Rs 50,000 Crore MoU: Triple Success with MoU, LOI, and Acquisition; do you own it?
The stock has witnessed significant buying activity in the last 3 years as it has surged more than 122 per cent.
SJVN Limited is a government-owned company engaged in the generation and transmission of hydroelectric power. It was established in 1988 under the name Nathpa Jhakri Power Corporation as a joint venture between the Government of India and the Government of Himachal Pradesh.
On July 22, 2023, SJVN's subsidiary, SJVN Green Energy Limited (SGEL), received a Letter of Intent (LOI) 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.
Once completed, the solar projects will generate 2997 MUs in the first year and approximately 69661 MUs over 25 years. The project is expected to be commissioned by December 2024, fulfilling the 18-month timeline from PPA signing. The PPA, spanning 25 years, will be signed between PSPCL and SGEL.
This solar initiative will significantly contribute to reducing carbon emissions, offsetting around 34.2 Lakhs Tonnes, aligning with the Government of India's mission to combat climate change.
In its meeting on Saturday, 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.
CPTC is a joint venture company incorporated in 2006, and currently, SJVN holds a 26 per cent stake in the company. CPTC's main business involves building, maintaining, and operating transmission systems between India and neighboring countries such as Nepal, Bhutan, Bangladesh, Myanmar, Sri Lanka, and Pakistan. The primary purpose of these transmission systems is to facilitate the export and import of electricity, transmission of data, and other related businesses.
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on July 21, 2023, SJVN MoU signing 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 construction of evacuation and transmission projects, ensuring efficient distribution of generated power. SJVN's ambitious target is to achieve 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.
On Friday, the shares of SJVN Limited plunged by 0.32 per cent. The company's current market capitalisation is Rs 19,688.27 crore. The stock has witnessed significant buying activity in the last 3 years as it has surged more than 122 per cent.
Investors to keep close eye on this trending PSU stock.
Disclaimer: The article is for informational purposes only and not investment advice.