SJVN gains after signing JV pact for coal mining

SJVN rose 1.19% to Rs 25.45 at 10:08 IST on BSE after the company said it signed an agreement with six companies to form a joint venture for mining coal from a block in West Bengal.

The announcement was made after market hours yesterday, 8 January 2015.

Meanwhile, the BSE Sensex was up 162.94 points, or 0.60%, to 27,437.65.

On BSE, so far 1.12 lakh shares were traded in the counter, compared with an average volume of 4.73 lakh shares in the past one quarter.

The stock hit a high of Rs 25.90 and a low of Rs 25.40 so far during the day. The stock hit a 52-week high of Rs 27.65 on 22 May 2014. The stock hit a 52-week low of Rs 19.90 on 18 February 2014.

The stock had outperformed the market over the past one month till 8 January 2015, rising 0.80% compared with 3% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 12.03% as against Sensex's 3.92% rise.

The large-cap company has an equity capital of Rs 4136.62 crore. Face value per share is Rs 10.

SJVN signed a joint venture (JV) agreement on 7 January 2015 with six state power generating companies belonging to West Bengal, Bihar, Uttar Pradesh, Punjab, Karnataka and Tamil Nadu for formation of a JV company for mining coal from Deocha Pachami-Dewanganj Horisingha Coal Block located in Birbhum district of West Bengal State.

The coal mined from the block would feed to the 1320 megawatts (MW) (2x660 MW) supercritical thermal power project of SJVN Thermal at Buxar, Bihar.

SJVN's net profit rose 91.7% to Rs 796.78 crore on 82.8% rise in total income to Rs 1271.95 crore in Q2 September 2014 over Q2 September 2013.

SJVN, a power company is a Mini Ratna & Schedule 'A' CPSU under the Ministry of Power, Government of India. It is a joint venture between the Govt. of India & Government of Himachal Pradesh.

Government of India holds 64.46% stake in the firm as at 30 September 2014.

Powered by Capital Market - Live News