Outcome of Meeting of the Board of Directors w.r.t. the raising of funds
Awaiting price reaction for this filing.
SJVN Limited, a Navratna Central Public Sector Enterprise (joint venture of the Government of India and Government of Himachal Pradesh), announced that its Board of Directors, at a meeting held on 29 May 2025, approved raising of funds through the securitisation of partial future unencumbered free cash flow of the Nathpa Jhakri Hydro Power Station (NJHPS). This is a structured finance route where the company monetises a slice of its future, unencumbered cash flows from this hydro asset to raise capital upfront, rather than issuing fresh equity or taking conventional bank loans. The Board meeting commenced at 16:00 hrs and was still in progress at the time of this disclosure, so further details (size, tenure, instrument structure, arranger, etc.) are expected in a follow-up filing.
For shareholders, this is a non-equity-dilutive way of raising money, meaning there is no immediate dilution of stake or EPS. The move effectively leverages a mature, cash-generating hydro asset to unlock liquidity, which can fund growth projects or reduce overall borrowing costs, but it does commit a portion of NJHPS future revenues to investors in the securitised structure.