The share price of NHPC surged by 5.65 percent on Friday, March 17, after the Investment Board Nepal (IBN) granted a survey licence of the 450MW Seti River-6 (SR-6) Hydroelectric Project to the Government of India enterprise.
During Friday’s trade, the stock opened at a price of Rs. 40.75 per share against the previous close of Rs. 40.65 per share and grew to touch an intraday high of Rs. 42.95.
It was trading at ₹42.75, up by 5.17 percent, at 10:40 a.m. on the NSE.
The stock touched a 52-week high of Rs. 46.90 on October 27, 2022 and a 52-week low of Rs. 27.05 on March 29, 2022, indicating that at the current level, the stock is trading over 58 percent above its 52-week low and almost 9 percent below its 52-week high.
The stock has rallied over 6 percent in the last one month. In the past six months, it has given a positive return of nearly 10 percent. Furthermore, the stock has returned almost 61 percent to its shareholders in the last five years.
NHPC Limited has signed a Memorandum of Understanding with the Investment Board of Nepal (IBN) to develop the Seti River-6 hydroelectric project in Achham and Doti.
The project, which will cost an estimated $800 million, will be overseen by NHPC Ltd and was signed in the presence of the Chief Executive Officer of IBN, Sushil Bhatta and Chairman and Managing Director of NHPC, AK Singh.
As part of the agreement, NHPC Ltd will set up an office in Nepal and prepare a detailed project report and environmental impact assessment, which will be submitted to IBN within two years of receiving the survey permit.
Previously, in a major development, the Cabinet Committee on Economic Affairs approved an investment of ₹1,600 crores for pre-investment activities for the 2,880 MW Dibang multipurpose project in Arunachal Pradesh.
This is a major step towards the development of India’s largest hydro project which will be equipped with storage and is estimated to cost ₹31,876.39 crores.
NHPC Ltd. was incorporated in 1975 under the Companies Act, 1956. The company is mandated to plan, promote and organize an integrated and efficient development of power in all its aspects through conventional and non-conventional sources in India and abroad, its website shows.
According to a MintGenie poll, 9 analysts on an average have a ‘STRONG BUY’ call on the stock.