Shares of SJVN Ltd. jumped on Wednesday after the company secured a 100 MW solar power project through e-Reverse Auction, conducted by Gujarat Urja Vikas Nigam Ltd.
The ground mounted solar project will be developed by the company's wholly owned subsidiary, SJVN Green Energy Ltd., at a tentative cost of Rs 550 crore, an exchange filing said.
The project is expected to be commissioned within 18 months from the date of signing of the power purchase agreement, the filing said. "The PPA shall be signed between SGEL & GUVNL for 25 years."
Shares of SJVN rose as much as 4.42%, the highest since Dec. 15, before paring gains to trade 2.24% higher at 11:13 a.m. This compares to a 0.63% advance in the NSE Nifty 50.
The stock has risen 173.58% year-to-date. Total traded volume so far in the day stood at 1.6 times its 30-day average. The relative strength index was at 60.95.
Of the five analysts tracking the company, three maintain a 'buy' rating, one recommends a 'hold,' and one suggests a 'sell', according to Bloomberg data. The consensus of analysts' 12-month price targets implies a downside of 20.3%.
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