Why This SBI Fund-Backed Midcap Stock Is Surging 11% Today

Shares of SJVN surged up close to 11% on Monday to hit a new 52-week high of ₹71.10.

What Happened: The surge today comes as the company late on Friday announced that its wholly owned subsidiary SJVN Green Energy Limited (SGEL) has signed a power purchase agreement (PPA) with Bhakra
Beas Management Board (BBMB) for 18 megawatts (MW) of solar power.

The project will be developed on the land parcels of BBMB in the states of Himachal Pradesh & Punjab. The project is scheduled to be commissioned by August 2024, the company informed in an exchange filing. The contract is for 25 years.

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The project is expected to produce 39.42 million units of energy in its inaugural year of operation. Over a span of 25 years, it is projected to generate a cumulative total of approximately 917 million units of energy. It is expected to contribute to a reduction of 44,923 tonnes of carbon emissions.

The announcement helped the midcap stock continue making gains for the third straight session. SBI Small Cap Fund owns a 2.13% stake in the company.

Price Action: SJVN’s share price was up 8.13% to trade at ₹69.20 in early trade on Monday.

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