SJVN Share plunged 12% on Government Plans to Divesting

SJVN share plunged 12% on September 21 after the government launched an OFS (offering) of up to 4.92% of the company’s shares at a discounted floor price.

 

 The government has announced the sale of 9.67 billion shares in the company, representing 2.46% of its total capital, with an option to sell an additional 2.46% while maintaining oversubscription. The government has set the floor price at 69 rupees per share, a 15% discount from the company’s previous closing price. 

 

The sales offer will begin on September 21st for non-retail investors and on September 22nd for retail investors. As of June 30, the state owned 86.77% of the company’s stock. After the proposed sale of 4.92% stake, the government will hold 81.85% of the company, which is 6 percentage points above the minimum public shareholding threshold of 75% of promoter shares. 

 

The company had scheduled a board of directors meeting on September 23 to consider raising funds through asset securitization. As of 1:07 pm, 

 

SJVN stock was trading at Rs 72.45, or 11.38% below its previous closing price of Rs 81.75 on the BSE.

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