SJVN, NHPC, and RailTel Corporation of India share prices gained up to 5.2 per cent in Monday’s (September 2) intraday trade. The buying interest sparked after the Indian central government granted ‘Navratna’ status to the state-owned companies.
As of 9:32 AM, SJVN shares were up 3.3 per cent, NHPC stock 2.45 per cent, and RailTel Corporation 4.59 per cent.
On Friday, August 30, the government upgraded the four Central Public Sector Enterprises (CPSEs) — Railtel Corporation of India, Solar Energy Corporation of India, SJVN, and NHPC — to ‘Navratna’ status. This brings the overall number of Navratna CPSEs in India to 25.
“Classification as a Navratna CPSE enables SECI towards enhanced autonomy in financial and operational matters and will accelerate the company’s growth path through better agility, improved geographical presence, and technology focus,” the finance ministry said while announcing the Navratna status for the companies.
Meanwhile, the Department of Public Enterprises (DPE), in its statement, said that RailTel Corporation of India is the 22nd Navratna CPSE in the country. It had an annual turnover of Rs 2,622 crore and a net profit of Rs 246 crore for FY24.
“Meanwhile, Solar Energy Corporation of India (SECI) will be the 23rd Navratna amongst the CPSEs. SECI is a company of Ministry of New and Renewable Energy (MNRE) with an annual turnover of Rs 13,035 crore and a net profit of Rs 436 crore for FY24,” DPE said in its statement.
What are Navratna companies?
PSUs are classified into Maharatna, Navratna, and Miniratna firms. Navratna classification is granted to government-owned enterprises that were previously categorised as ‘miniratna’ category I, in recognition of their outstanding financial and market performance.
In 1997, the government launched the Navratna plan to select CPSEs with comparative advantages and to help them become global giants.
Navratna status empowers companies with faster decision-making, increased efficiency, and greater empowerment.
These companies are given the autonomy to establish joint ventures overseas, access new markets, and leverage local expertise. Furthermore, it will foster innovation through technological alliances, strengthen market positioning, and facilitate mergers and acquisitions, leading to growth with an increased market share.
SJVN, NHPC, and RailTel share price history
In the past one year, shares of SJVN have given a stellar return of 82 per cent, RailTel Corporation shares have gained over 155.8 per cent, and NHPC has rallied 86.1 per cent against Sensex’s rise of 26.2 per cent.
First Published: Sep 02 2024 | 10:56 AM IST
