SJVN Share Price Soars 14% After Securing ₹13,000 Crore Mizoram Pumped Storage Project

Shares of SJVN Ltd., a state-owned enterprise, soared by as much as 14% during early trading on Friday following the announcement of securing a significant order valued at nearly ₹14,000 crore in Mizoram. This marks the company's inaugural project in the northeastern region.

By 9:17 am IST, SJVN share price were up by approximately 11%, trading at ₹156.45 on the National Stock Exchange (NSE). Over the past year, the stock has surged 168%, more than doubling investors' returns.

The project, known as the Darzo Lui Pumped Storage Project, is SJVN's first initiative in Mizoram and boasts an installed capacity of 2,400 megawatts. It will be developed across Darzo Nallah, a tributary of the Tuipui River. SJVN has received a Letter of Intent from the Government of Mizoram for the project, which has an estimated completion cost of ₹13,947.50 crore, including interest during construction and financing costs as of April 2023.

This closed-loop pumped storage project will feature eight units of 300 megawatts each and is expected to generate an annual energy output of 4,993.20 million units, with a 95% plant availability. The annual input energy needed for pumping water to the upper reservoir is estimated at 6,331.66 million units, also assuming 95% plant availability.

SJVN aims to complete the project within 72 months (six years), with a formal agreement between SJVN and the Government of Mizoram anticipated within the next three months. Additionally, in collaboration with IREDA, SJVN will aid in establishing 900 MW hydro-electric projects in Nepal, subject to approval from central and other regulatory authorities.

According to the June quarter shareholding pattern released on the BSE, Life Insurance Corporation of India (LIC), the country's largest insurer, increased its stake in SJVN to 2.26%, up from 1.73% at the end of the March quarter. Between April and June, small shareholders, defined as those with authorized share capital up to ₹2 lakh, also increased their holdings, rising by about 50,000 to 12.13 lakh from 11.6 lakh at the end of March.

Comparatively, the Nifty index delivered returns of around 23% during the same period. Over the past five years, SJVN shares have provided remarkable returns of 547%.

SJVN Limited is involved in the generation and sale of hydroelectric power, as well as the design, examination, operation, planning, development, execution, and maintenance of hydroelectric power projects. The company also provides construction and consultancy services for hydropower and road or railway tunnels. 

Additionally, SJVN generates hydro, solar, wind, and thermal power and operates hydroelectric power projects in Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Nepal, and Bhutan. The company is headquartered in Shimla, Himachal Pradesh, India.