State-Owned Power Generation Company Inks PPAs Worth Rs 7,000 Crore With PSPC, Stock Jumps

SJVN Limited in an exchange filing has informed that its wholly owned subsidiary, SJVN Green Energy Limited (SGEL) has signed two Power Purchase Agreements (PPAs) with Punjab State Power Corporation Limited (PSPCL) for 1,200 MW solar power.

These two PPA includes one for 200 MW solar projects that are to be developed anywhere in Punjab and the other for 1,000 MW solar projects that are to be developed anywhere in the nation. These projects shall be built, owned, and operated within 18 months and will cost about Rs 7,000 crore, according to the filing by the Company.

"In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we inform you that SJVN Green Energy Limited (A wholly owned subsidiary of SJVN Limited) has signed two Power Purchase Agreements ("PPAs") with Punjab State Power Corporation Limited ("PSPCL"), one for 200 MW Solar Project(s) to be developed anywhere in Punjab and other for 1,000 MW Solar Project(s) to be developed anywhere in the country," the Company said in a exchange filing on Aug 14.

It added, "These projects shall be developed within 18 months on Build Own and Operate basis and will involve an investment of around ₹7,000 crores. The Letter of Intent for these 1,200 MW projects was received from PSPCL on July 21, 2023."

It further added, "The projects are expected to generate 2,997 million units in first year and about 69,661 million units cumulatively over a period of 25 years. The commissioning of these projects shall reduce more than 34 Lakh tonnes of carbon emission."

Meanwhile, SJVN's stock on Wednesday opened at Rs 57.54 per share on the BSE. It is currently trading 0.47% higher at Rs 57.81 per share. At 11.32 AM, the stock hit intraday highs and lows of Rs 58.19 and Rs 57.15, respectively.

It jumped 6.27% in 1 week, and 26.47% in 1 month, respectively. It gave a strong return of 57.43% in 3 months and 75.87% in 6 months, respectively. The stock has given a multibagger return of Rs 102.98% in 1 year, while a positive return of 115.03% in 2 years and 159.28% in 3 years, respectively. In 5 years, it has given 96.11% positive return.

The stock's 52-week high is Rs 62.75 and its 52-week low is Rs 28 on BSE. SJVN is a midcap power generation coompany with a market cap of Rs 22,623.83 Crore.