PSU Shares rose to 5% following their acquisition of ‘Navratna’ status, enhancing their financial autonomy. This status allows these companies to invest significantly without government approval, boosting investor confidence.
On Monday, following the announcement, SJVN Ltd’s shares hit a 5% increase, reaching ₹140 per share on the NSE. Similarly, RailTel Corporation of India Ltd saw a 5.1% rise to ₹516, and NHPC Ltd climbed 4.6% to ₹100.5 per share.
The Department of Public Enterprises has added four new PSUs to the ‘Navratna’ list, including SJVN Ltd, Railtel Corporation of India Ltd, NHPC Ltd, and the unlisted Solar Energy Corporation of India Ltd. This upgrade increases the total to 25 Navratna PSUs.
Navratna status grants these enterprises greater leverage in financial decisions, such as forming joint ventures, establishing subsidiaries overseas, and making significant investments. For example, they can invest up to ₹1,000 crore or 15% of their net worth in single projects.
Historically, these PSUs have shown robust performance, with NHPC, SJVN, and RailTel providing substantial returns over the past year. NHPC shares surged by 91%, while SJVN and RailTel saw increases of 110% and 117%, respectively.
As of mid-morning trading, NHPC shares were up by 1.8% at ₹97.85, RailTel shares rose 2.04% to ₹500.8, and SJVN shares increased by 2.19% to ₹136.27, reflecting continued positive market sentiment towards these newly minted Navratna companies.
