- By Vaamanaa Sethi
- Thu, 21 Sep 2023 03:46 PM (IST)
- Source:JND
Shares of SJVN cracked over 10% in early trade on Thursday on BSE as the government launched an offer for sale (OFS) for up to 4.92% equity stake at a heavily discounted price.
Around 10 am in the morning, the stock was trading 9.05 percent lower at Rs 74.50 on NSE. The government announced an OFS to sell 9.67 crore equity shares, or 2.46% equity stake in SJVN, with an option to sell another 2.46% by retaining oversubscription.
SJVN OFS opens for non-retail investors on September 21, and for retail investors on September 22. The offer's floor price stands at Rs 69 per share, representing a discount of almost 15 percent compared to the prior closing price.
Offer for sale in SJVN opens tomorrow for non-retail investors. Retail investors can bid on Friday. The government will divest 4.92 percent equity including a Green Shoe option of 2.46 percent,” DIPAM Secretary Tuhin Kanta Pandey posted on X.
According to media reports, SJVN stock has surged nearly 163.56 percent over the last six months. The benchmark Nifty50 index has given a return of 16.33 percent over the same duration.
Year-to-date (as of September 20), the stock has gained a whopping 139% while the Sensex has risen about 10%.
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Furthermore, in an independent exchange filing dated September 20, SJVN announced the signing of a Memorandum of Understanding (MOU) with PFC. This MOU outlines financial support for a wide range of project portfolios, with a significant emphasis on renewable energy projects and thermal generation projects. These projects are planned with a total project cost estimated at approximately Rs 1,18,826 crore.
"The term loan financial assistance is tentatively proposed at 70% of the project cost, which may be increased for renewable energy projects as per project requirements," said the company.