SJVN Ltd, the state-run hydropower and renewable energy major, is gearing up for a strategic financial move as its Board of Directors prepares to consider raising funds through the securitization of assets. The meeting, scheduled for May 29, 2025, will also review the company’s financial results for the year ended March 31, 2025, and discuss the potential final dividend for FY2024-25.
Key Highlights:
-
Fundraising via Securitization: SJVN’s board has previously granted in-principle approval to monetize assets by securitizing partial future revenue or return on equity from its flagship Nathpa Jhakri Hydro Power Station. This innovative approach will unlock capital tied up in operational assets, providing fresh liquidity for expansion and new projects.
-
Strong Financials: The company reported a robust 31% year-on-year jump in Q1 profit, with net income rising to ₹958.47 crore. SJVN’s long-term growth story remains intact, with its stock delivering a 153% gain in the past year and a remarkable 245% rise over three years.
-
Strategic Monetization: Alongside securitization, SJVN is also considering the dilution of its stake in SJVN Green Energy Limited, further diversifying its funding avenues.
-
Liquidity and Flexibility: Backed by strong government ownership and a healthy liquidity profile, SJVN has significant headroom to raise additional debt for its ongoing and future capex plans.
-
Market Watch: Investors are closely tracking the upcoming board meeting, as these decisions could shape SJVN’s next phase of growth and impact its position in India’s rapidly evolving energy sector.
Sources: Economic Times, BlinkX, CARE Ratings