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The stocks surged after the company signed a Memorandum of Understanding (MoU) with the government of Bihar to develop the 1,000 MW Hathidah Durgawati Pumped Storage Project (PSP).
The project is estimated to cost ₹5,663 crore and will have a levelized tariff of ₹9.39 per kWh, based on February 2024 price levels, assuming a pumping energy rate of ₹3 per kWh. The Pumped Storage Projects development in Bihar will create direct and indirect employment for 5,000 persons and investment of about ₹10,000 crore.
Currently, SJVN is developing about 12,000 MW of PSPs (Pumped Storage Projects) in various states such as Maharashtra, Karnataka, Mizoram and Himachal Pradesh.
SJVN shares delivered 15% returns in 2024, marking the fourth straight calendar year of positive returns for the PSU stock. Before 2024, the stock had gained 23%, 12% and 165% in 2021, 2022 and 2023 respectively.
Back in 2023, the government had sold up to 5% stake in SJVN through an Offer for Sale (OFS). The non-retail portion in the OFS was subscribed 3x the shares on offer, the retail portion saw demand worth 2.4x.
Shares of SJVN are trading 5.4% higher at ₹110.02.
