Here's why SJVN stock price rallied over 13% on July 26; find details here

SJVN stock zooms: Shares of SJVN jumped as much as 13.23 per cent to hit an intraday high of Rs 159.60 per share on Friday, July 26, 2024.
 

The share price rose after the company announced that that Government of Mizoram has alloted 2,400 MW Darzo Lui pumped storage project (PSP) to SJVN.

In an exchange filing, SJVN said, “We hereby inform you that the Company has received a Letter of Intent for allotment of Darzo Lui Pumped Storage Project from the Government of Mizoram.”

With an installed capacity of 2,400 MW, the project will feature eight 300 MW units and is designed as an On-stream Closed Loop Type pumped storage facility.

 

The project is expected to generate approximately 4,993.20 million units (MU) of energy annually, based on a 95 per cent plant availability. To support this, it will require an estimated 6,331.66 MU of input energy annually for pumping water to the upper reservoir, also assuming 95 per cent plant availability.

The total estimated cost for the project, including interest during construction (IDC) and financing costs at April 2023 prices, stands at Rs 13,947.50 crores. The project is scheduled for completion within 72 months.

This will be SJVN's first venture in Mizoram, it added. 

The company also announced that a formal agreement with the Government of Mizoram is expected to be finalised within the next three months.

SJVN Limited, founded in 1988 and based in Shimla, Himachal Pradesh, is an Indian public sector company specialising in power generation. 

The company manages the entire lifecycle of hydroelectric projects, including design, analysis, operation, planning, development, execution, and maintenance. 

While it initially concentrated on hydroelectric power, SJVN has expanded into thermal, solar, and wind energy sectors. It oversees major projects such as the Nathpa Jhakri and Rampur hydro power stations and is actively pursuing numerous new initiatives across India.

The market capitalisation of the company is Rs 60,636.74 crore, according to Bombay Stock Exchange (BSE). The company falls under the BSE500 category.

At 9:51 AM, shares of SJVN were trading 9.40 per cent higher at Rs 154.20 per share. In comparison, BSE Sensex was trading 0.41 per cent higher at 80,365.39 levels.