India Flash Bulletin

As OFS starts today, SJVN stocks drop 10%; the board may consider disinvesting

<p>State-run shares Following the promoter’s decision to sell up to 9,66,72,962 equity shares through a two-day offer for sale (OFS) that began today, SJVN saw a 10% decline in trading on Thursday. The OFS will accept bids from retail investors tomorrow, on Friday.</p>
<p>According to an exchange filing, the government intends to sell up to 4.92 percent of its share in hydroelectric power producer SJVN Ltd.<img decoding=”async” class=”alignnone wp-image-193069″ src=”” alt=” dyk shah rukh khan and sushmita sens entry scene in main hoon na was unplanned dow” width=”1211″ height=”678″ srcset=” 300w,×84.jpg 150w” sizes=”(max-width: 1211px) 100vw, 1211px” title=”As OFS starts today, SJVN stocks drop 10%; the board may consider disinvesting 6″></p>
<p>The basic offer will include the option to sell an additional 9.66 crore shares, or 2.46 percent of the total equity, in addition to the base offer’s limit of 9.66 crore shares.</p>
<p>The stock started trading at Rs 74.69 compared to the previous close of Rs 81.75 and dropped 10% to reach Rs 73.53 on the BSE.</p>
<p>The offer’s floor price was established at Rs 69, representing a significant 15.59% reduction to SJVN’s Wednesday closing price of Rs 81.75 per share. The seller is the Government of India’s Ministry of Power, operating on behalf of and in place of the President of India. The OFS is being conducted in an effort to meet the minimal public ownership requirements since the government still owns 86.77% of the firm.</p>
<p>SJVN’s stock price has increased 173 percent since September 30, 2022, when it reached a 52-week low of Rs. 29.90 on the BSE. The stock has increased by a staggering 139 percent year-to-date (as of September 20), while the Sensex has grown by approximately 10%.</p>
<p>10% of the entire offer is set aside for distribution to retail investors, subject to the receipt of bona fide bids. Mutual funds and insurance firms will get a minimum of 25% of the offer shares.</p>
<p>The eligible workers may apply for up to Rs 5 lakh worth of shares, but their bids will only be taken into consideration for distribution in the first place if they are for an amount up to Rs lakh. If the employee component is still under-subscribed, it will be distributed proportionately for amounts more than Rs 2 lakh, as long as the total allocation to an employee doesn’t exceed Rs 5 lakh.</p>
<p>In addition, the SJVN board of directors will meet on Saturday, September 23, to discuss and authorize raising money via the securitization of assets, according to an exchange filing.</p>
<p>On September 20, SJVN disclosed in a separate exchange filing that it had signed a Memorandum of Understanding (MOU) with PFC for financial assistance to various diversified portfolios of projects, primarily thermal generation and renewable energy projects, to be established at a total project cost of about Rs 1,18,826 crore.</p>
<p>According to the corporation, “the term loan financial assistance is tentatively proposed at 70% of the project cost, with the possibility of an increase for renewable energy projects based on project requirements.”</p>
<p>According to the MoU, PFC’s financial assistance in the form of a term loan is provisionally estimated to be between Rs 80,000 and Rs 90,000 crore, indicating a significant commitment to the completion of these crucial projects. According to that statement, these funds may be raised further to meet the unique demands of the renewable energy projects, highlighting how this cooperation may be adjusted to changing project requirements.</p>
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