SJVN shares zoom 14% on Rs 7,000-crore order

Shares of SJVN Ltd touched their 52-week high today after the power producer said it bagged a contract from Punjab State Power Corporation Ltd (PSPCL) for the development and procurement of 1,200 MW of solar power entailing an investment of Rs 7,000 crore. The stock hit a 52-week high of Rs 57.20, rising 14.17% today against the previous close of Rs 50.10 on BSE. Market cap of the firm rose to Rs 22,112 crore.

A total of 37.75 lakh shares changed hands amounting to a turnover of Rs 20.98 crore on BSE.

In terms of technicals, the relative strength index (RSI) of the stock stands at 71.6, signaling it's trading in the overbought zone. SJVN shares have a beta of 0.9, indicating low volatility in a year. SJVN stock is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

“SJVN Green Energy Ltd (SGEL; a wholly owned subsidiary of SJVN) will develop 1000 MW (solar) project anywhere in the country and balance 200 MW in the state of Punjab," the company said.

SJVN has received the Letter of Intent (LOI) from the PSPCL for the procurement of 1,200 MW of solar power.

The PSPCL will procure 1,000 MW energy produced anywhere in India at a tariff of Rs 2.53 per unit, while 200 MW energy produced in Punjab will be procured at a tariff of Rs 2.75 per unit, it stated.

Development of this project involves an investment of around Rs 7,000 crore, which will be on Build Own and Operate (BOO) basis, it stated.

The project shall be commissioned in a period of 18 months from the date of signing of power purchase agreement (PPA) and is expected to be commissioned by the end of next year. The PPA will be signed shortly between PSPCL and SGEL for 25 years.

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