Multibagger stock SJVN share price rises 7% on signing MOU for 1000 MW project

Stock Market Today: Multibagger stock SJVN share price gained 7% in the morning trade on Wednesday after the company announced signing a memorandum of understanding (MoU) with the Government of Bihar for the 1000 MW Hathidah Durgawati pumped storage project.

Share price movement

SJVN share price opened at ₹107.20 on the BSE on Wednesday, almost 2.7% higher than the previous close of ₹104.40. SJVN share price thereafter gained to intraday highs of ₹111.65, translating into gains of close to 7%

SJVN share price had hit a 52-week high of ₹170 in February 2024. However, the stock has corrected significantly since. Nevertheless, SJVN share price has gained more than three times in two years (since the start of 2023), having given multibagger returns to investors.

Project details

SJVN signed a MoU with the Bihar government for the development of the 1,000 MW Hathidah Durgawati pumped storage project (PSP) and other PSPs.

Proposed on river Durgawati in district Kaimur of Bihar, the Hathidah Durgawati PSP, with an installed capacity of 1000 MW (4x250 MW), is designed to generate a daily peak energy of 6.325 Million Units (MU) and an annual peak energy of 2308.65 MU, the company said in an exchange filing. The estimated project cost is ₹5,663 crore, with a levelized tariff of ₹9.39 per kWh (assuming a pumping energy rate of ₹3 per kWh) based on February 2024 price levels, as per SJVN.

SJVN was designated as the nodal agency for the development of pumped storage projects in Bihar by the Ministry of Power, Government of India, in August 2022.

Following this, on August 22, 2022, the Secretary (Energy), the Government of Bihar, gave SJVN four PSPs: the 400 MW Telharkund PSP, the 345 MW Sinafdar PSP, the 225 MW Panchgotia PSP, and the 1600 MW Hathidah Durgawati PSP.

After conducting ranking studies of these projects, SJVN prepared a Feasibility Study Report (FSR) for the most viable project, Hathidah Durgawati PSP, with a proposed capacity of 1000 MW.

SJVN is currently developing about 12000 MW of PSPS in various states such as Maharashtra, Karnataka, Mizoram and Himachal Pradesh.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before taking any investment decisions.