SJVN Shares Surge on Strategic MoUs with ONGC and Sambhar Salts

SJVN Green Energy Ltd (SGEL), a fully owned subsidiary of SJVN, signed two memorandums of understanding (MoUs) on August 9, 2023, one with ONGC and the other with Sambhar Salts, a division of Hindustan Salts. 

The agreement with ONGC will open the door for joint development of renewable energy projects, including offshore and onshore solar, wind, hybrid, and RTC projects. It also involves foraying into new technologies, such as green hydrogen and green ammonia. This joint project development will be accomplished by SGEL and ONGC forming a Joint Venture Company, for which the requisite permissions from the relevant Ministries, DIPAM, and NITI Aayog will be obtained later. 

Additionally, the MoU with Sambhar Salts will make it possible for SGEL to develop a solar project or park in stages on the designated land bank of Sambhar Salts. Through project-specific Implementation Agreements, the parties will investigate and negotiate potential equity partnerships and revenue-sharing mechanisms for the development of solar projects. 

SJVN’s principal business activity is electricity generation. The company is also engaged in the business of providing consultancy. These projects will increase SJVN’s presence in the renewable energy market and support the company’s ambitious goal of having 50,000 MW of installed capacity by 2040. 

SJVN is currently trading at Rs 55.82, up by 1.36 points or 2.50% from its previous closing of Rs 54.46 on the BSE. The scrip opened at Rs 56.21 and touched a high and low of Rs 56.40 and Rs 55.55, respectively. So far 208455 shares were traded on the counter. 

The BSE group ‘A’ stock of face value of Rs 10 has touched a 52-week high of Rs 62.75 and a 52-week low of Rs 27.90. Last one week high and low of the scrip stood at Rs 57.50 and Rs 52.69 respectively. The current market cap of the company is Rs 21,401.66 crore. The promoters holding in the company stood at 86.77%, while Institutions and Non-Institutions held 5.72% and 7.51%, respectively. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.