SJVN Shares Drop as Government Plans Equity Sale: Key Highlights
Following the government’s declaration of an equity sale via an Offer for Sale (OFS), shares in SJVN fell 10% during a recent trade. The following are the key takeaways:
The government, which is the promoter of SJVN, intends to sell approximately 9,66,72,962 equity shares during a two-day OFS.
Given that the government presently owns 86.77% stakes in the corporation, the OFS seeks to meet the minimal public shareholding requirements.
Price Movement of Stocks
The price of SJVN’s stock decreased from its previous close of ₹81.75 to ₹74.69 at the opening of trading before falling 10% to end the day at 73.53 on the BSE.
It’s interesting to notice that the share price of SJVN has dramatically increased, from its 52-week low of ₹29,90, which it achieved on September 30, 2022.
The stock has increased significantly year-to-date, while the Sensex has risen by approximately 10%.
Government equity divestments
With a Green Shoe choice of 2.46%, the government intends to divest 4.92% of its equity.
₹69 per share has been designated as the sale’s floor value.
The 4.92% share sale is anticipated to raise more than 650 crore on the floor price.
Opportunity for Retail Investors
10% of the offer is set aside for distribution to retail investors, pending the receipt of bona fide bids.
Employees who qualify may apply for up to ₹5 lakh shares
If the employee portion is still not fully subscribed, it will be distributed proportionately for amounts greater than 2 lakh rupees, up to a maximum of 5 lakh rupees per employee.
Board meeting of SJVN
This Saturday, September 23, the board of directors at SJVN will meet to discuss and possibly approve raising capital via asset-backed financing of assets.
Effective at 9:15 a.m., the OFS will be held in another section of the stock exchanges all through trading hours.
In conclusion, following the government’s declaration of an equity sale via the OFS, SJVN shares saw a decrease. Retail investors have the chance to join in this action, which aims to achieve regulatory compliance.
‘SJVN shares’ Article By Deby T
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