The price of shares of SJVN fell by 10% as soon as the offer for sale (OFS) for retail investors started on Thursday on the BSE. On Friday, retail investors can place a bid in the OFS.
The stock dropped 10% to 73.53 on the BSE after opening at 74.69, compared to its previous closing level of 81.75.
SJVN’s share price on the BSE has increased 173 percent since its 52-week low of 29.90 on September 30, 2022. The stock has increased significantly by 139 percent year to date, while the Sensex has increased by over 10%.
Through the two-day OFS, the government will sell 4.92 percent of its equity, including 2.46 percent of green shoe options. The minimum selling price for the government’s 4.92 percent stake in SJVN is 69 per share.
The sale of 4.92 percent of the stock, or more than 9.66 crore shares, will bring in more than 650 crore at the minimum share price of 69.
Additionally, the board of directors of SJVN is scheduled to meet on Saturday, September 23, according to an exchange filing, to discuss and approve the raising of funds through the monetization of assets.
The Memorandum of Understanding (MoU) between SJVN and PFC for financial support to several diversified portfolios of projects, including renewable energy projects and thermal generation projects, was signed on September 20, according to a separate market filing. Around 1,18,826 crore is how much the project is expected to cost.
According to the business, “temporary loans are proposed to finance 70% of the project cost, with the possibility of an increase for renewable energy projects as per the requirements.”
According to the MoU, PFC’s financial support in the form of short-term loans is proposed to be between 80,000 and 90,000 crore, showing significant commitment for the purchase of these important projects. According to the statement, these funds may be raised further to support the unique needs of renewable energy projects, giving this collaboration flexibility in aligning its adaptive capacity with the project’s expanding needs.
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In the June quarter of the 24th fiscal year, SJVN recorded a loss of 271.75 crore, a fall of more than 55 percent in its total net profit. Total revenue for the company dropped from $1,072.23 crore in the same time a year ago to $744.39 crore in the first quarter of the current fiscal year.